Virginia-based Plesion Capital Fights Global Poverty
Virginia-based Plesion Capital seeks out mission-based entrepreneurs and companies that combat poverty around the world. The social impact venture capital firm has invested $250,000 in Releaf, a Nigerian agritech company that has proprietary supply chain technology for use in Africa’s agricultural sector. This adds to the agtech startup’s recently closed $3.3 million pre-Series A round, which was oversubscribed.
Co-founder and CEO Ikenna Nzewi and Co-founder and CTO Uzoma Ayogu are using the funds to address an emerging critical need of Africa’s growing population—climate adaptive supply chains. Their technology will be used to support Africa’s growing population projected to reach 2.5 billion by 2050.
Releaf’s technology brings efficiencies to the continent’s supply chains by helping Fast Moving Consumer Goods Companies (FMCGs) receive high quality inputs cheaper. By localizing food processing technology in farming clusters, Releaf increases quality, reduces logistic costs and lowers consumer prices.
Releaf’s involvement is even more involved, as it finances, sources and processes crops at scale that enables farmers to focus on farming. Their innovative technology bolsters efforts to industrialize food processing in Africa, helping smallholder farmers gain more value from their crops by reducing inefficiencies in the supply chain.
“Industrializing food processing throughout Africa is a major opportunity that will create significant economic and societal benefits for all parties involved, especially farmers who often struggle to make a fair living off their land,” said Ben Finlay, Plesion Capital’s Founder and Managing Partner. “Kenna and Uzo have created exceptional technology solutions that are helping to address this pressing need by acting as a bridge between farmers and factories.”
Releaf’s technology combines hardware and software solutions that will help scale Africa’s agricultural sector. The startup’s first step is to change Nigeria’s multi-billion-dollar oil palm industry that has over 4 million smallholder farmers. They are currently held back by inefficient processing systems that is alleviated by Releaf’s sourcing and logistics application tool (SALT). Going forward they will be able to give updates about their palm nut inventory and confirm the price and volume of palm nuts available for sale.
African farmers also receive a hardware solution via Releaf’s proprietary de-shelling equipment called Kraken that produces high-quality oil much faster and more efficient than traditional labor intensive methods. Releaf’s hardware has a higher extraction efficiency that is a 27-30% higher yield of better quality oil. A competitive advantage emerges, as well, as their premium oil palm products have 95% purity that is greater than the 88% industry standard.
Plesion Capital’s investment follows the social Impact venture capital firm’s focus on making African-based investments that address major societal challenges across the continent. The areas include food insecurity, clean water access and infrastructure improvement, both financial and physical.
Their latest investment in Releaf follows their announcement in January of its first investment in Uganda-based XENO Corporation. The fintech startup helps millions in Africa to plan, save and invest for their financial goals, with and without internet access.
Founded in July of 2022 by Ben Finlay, Plesion Capital foresees further expansion into other markets globally. The social impact venture capital impact firm has a strategy of supporting startups with pre-seed and seed investments that is followed by providing them with help to develop and introduce products and services—having the potential to change people’s lives. Their investment activity seeks to reduce extreme poverty and to pursue opportunities for economic growth.
