InspiraFarms Cooling, a leading provider of cooling solutions based in Kenya, has recently secured a substantial $1.09 million (€1 million) investment.
In a major stride towards combating food waste and enhancing agribusiness in Africa, InspiraFarms Cooling, a leading provider of cooling solutions based in Kenya, has recently secured a substantial $1.09 million (€1 million) investment. The funding, spearheaded by notable investors such as the Foundation for Clean Energy and Energy Inclusion for Africa (CEI Africa), KawiSafi, and Factor<e>, will play a pivotal role in supporting the company’s off-grid energy cold storage projects across the continent.
This recent investment closely follows a significant $5.4 million (€5 million) funding obtained from InfraCo Africa in 2023. The funds were allocated towards piloting InspiraFarms’ innovative ‘Cooling-as-a-Service’ model and expanding its solutions in key African countries, including Kenya, Zambia, Zimbabwe, and Ghana. The company had previously successfully concluded its series B round in 2020.
Established in 2012, InspiraFarms Cooling is dedicated to addressing the challenges of food waste and empowering rural communities by providing agribusinesses with pre-cooling and cold chain technology services. By offering temperature-controlled warehouses, packhouses, slaughterhouses, cold rooms, precoolers, freezers, and long-term potato storage solutions, the company aims to reduce costs and extend the shelf life of food products.
In Africa, only approximately 5% of fresh produce undergoes proper cold chain processes, resulting in a staggering 30-50% loss. To tackle this issue head-on, InspiraFarms has positioned itself as a crucial player in the industry, serving a diverse range of clients, including food distributors, exporters, agribusinesses, and third-party logistics. With hundreds of its units operating in fifteen countries, the company has proven its efficacy in providing sustainable solutions to pressing challenges.
Julian Mitchell, the CEO of InspiraFarms, underscored the company’s unwavering commitment to designing, developing, installing, servicing, and financing energy-efficient cooling solutions. The investment from CEI Africa represents a significant milestone for the Foundation, marking its first venture under the Crowdfunding window.
Furthermore, InfraCo Africa’s involvement in 2023 marked the organization’s initial foray into ‘first-mile’ cold storage, as highlighted by Omar Jabri, InfraCo Africa’s Head of Business Development.
In a strategic move to expand its market presence, InspiraFarms announced negotiations in November 2023 to acquire Celtics Cooling’s African business. The company aims to capture a substantial share of the African market by integrating Celtic’s operations into its existing infrastructure in Ethiopia, Ghana, and Kenya.
One of the distinguishing features of InspiraFarms’ products is their compatibility with renewable energy sources, with some units capable of operating entirely off the grid. The technology behind these products not only aligns with sustainability goals but also allows for up to 25% energy savings, a crucial factor in regions where energy access can be a challenge.
As the global focus on sustainable practices intensifies, InspiraFarms Cooling is positioned as a trailblazer in the African agribusiness landscape. With continued investments and strategic acquisitions, the company is poised to make significant strides in reducing food waste, empowering local communities, and promoting sustainable, energy-efficient solutions across the continent.