Venture: Babban Gona
Investment: $3 million loan
Portfolio: Scaling Capital
Investment date: September 2019
Region(s) served: Sub-Saharan Africa
Core Impact Metric: Increased farmer income
Subordinated loan helps unlock further funding to increase farmer incomes in Nigeria
Babban Gona is working to revitalize Nigeria’s agricultural sector by serving networks of smallholder farmers. Babban Gona delivers training, credit, agricultural inputs, marketing support, and other key services to farmers’ doorsteps;. Babban Gona’s model is designed to help young people build financial resilience in their rural communities, where viable sources of long-term income are needed amid rising unemployment and political instability.
Why Rippleworks Invested:
Long-term lenders are scarce amid Nigeria’s political and economic uncertainty, and there is hesitancy by traditional financial institutions to invest in agricultural endeavors. As a result, Babban Gona required subordinated debt from patient funders to crowd in more funding at a key organizational inflection point.
The combination of Babban Gona’s services results in 100% income increases above the national average for their farmers.