Virtual City gets Sh135m loan from US social fund
Wednesday, June 6, 2012
Virtual City, a local software development firm, has received a Sh135 million ($1.5 million) convertible loan from Acumen Fund for the development of a mobile-based agricultural application to help small-scale farmers market their produce.
The investment represents the latest capital inflows from international investors in the local information technology sector, which is emerging as a key target for venture capitalist firms.
Recently concluded deals include the triple acquisitions by Fanisi Venture Capital Fund in Elris Communications, TKM Maestro and technology enterprise firm Paystream.
Virtual City chief executive John Waibochi said that the investment from the American-based private equity fund would enable small-scale farmers to access information on markets and prices for their produce.
“We are using this technology to improve the livelihoods of the rural smallholder farmers, change the ecosystem for the agricultural processing sector and support local economies,” said Mr Waibochi.