This article was co-written by Rahnuma Tasnim and Tasik Mahmud Sajid
Farmers in Bangladesh have always lacked access to formal financing. Banks and financial institutions have failed to fulfill the market needs due to logistics of paperwork, documentation, and lack of a credit scoring technology. However, advancements in technology, government support, and entrepreneurial drive, etc. have created an environment conducive to innovation and investment, leading to the booming growth of agritech startups in the country. These startups are addressing a myriad of challenges in the agricultural sector, including ensuring access to finance for farmers.
WeGro Global, an agri fintech startup that facilitates access to finance, input and market, is reshaping the agricultural financing sector through its digital agriculture financing platform.
It mainly works as a Shariah-based profit-sharing investment platform where farmers are financed through retail crowdfunding. The company has seen tremendous growth since its inception in 2021.
WeGro has recently joined Accelerating Asia’s eighth cohort, a prestigious selection of startups from Asia. Before this, WeGro had raised $100,000 in impact grants from Biniyog Briddhi. After a two-month-long process, WeGro emerged among 10 startups from the Asia-Pacific region to be selected among 600 participants from across the continent. Like any other startup, WeGro has overcome numerous challenges to come where it is today.
Sowing the Seeds with a Dream
All entrepreneurs start with a dream. It is the dream to make a change, to address a problem or a set of problems in the market that leads to the birth of companies like WeGro. The journey of WeGro was fueled by Md Mahmudur Rahman, CEO and co-founder of WeGro. He had dreams of simplifying the lives of farmers by bridging the gap in agricultural financing and believed in the power of technology to bring about positive changes in the agricultural sector; “Witnessing the challenges faced by farmers in accessing finance and markets, I was inspired to create an innovative solution,” said Mahmud. This vision, coupled with a strong determination to make a lasting impact, laid the foundation for WeGro Technologies.
Entrepreneurial Minds Behind the Success
“With complementary expertise and a passion for social impact, we established WeGro to leverage technology and financial solutions for the benefit of rural communities,” said the two CEOs, Md Mahmudur Rahman and Md Alvi Rahman. The success of WeGro lies in its passionate and dedicated team. Mahmud and Alvi came together with a shared vision of farmers’ empowerment and a goal of revolutionizing the agricultural sector. The unique part here has been just how complementary their skill sets are to have the best possible outcome.
Potential of the Agritech Industry in Bangladesh
The agriculture sector, with the third highest contribution to the country’s GDP and employing around 45% of the population, is a crucial sector in the economy of Bangladesh.
With a population of over 160 million people and a rapidly growing economy, the demand for food is increasing, simultaneously increasing gaps in terms of finances and inputs in the sector.
Leveraging technology to enhance productivity, access to finance, and market opportunities can have a transformative impact.
When asked why Mahmud chose this sector, his answer was to the point, “By focusing on agritech, I aim to empower farmers, improve food security, and contribute to sustainable agricultural practices. The agrotech sector aligns with my passion for making a meaningful difference in the lives of farmers and driving positive change in the agricultural landscape.”
The agritech industry of Bangladesh has achieved tremendous growth in recent years, with companies like WeGro Global being at the forefront of this change.
The funding gap in agriculture is huge, making farmers vulnerable to high-interest informal lenders. Agritech startups like WeGro are addressing this problem through innovative retail crowdfunding models. WeGro aims to become the first agricultural investment bank with a diverse portfolio of fintech products for the farmers and investors.
How WeGro Stands Out
The founders wanted to distinguish WeGro through its unique value proposition to the target audience; “What sets WeGro apart is its integration of agricultural financing and crowd investing, facilitated by its state-of-the-art fundraising platform. This platform empowers small investors to participate in the agricultural sector, providing them with an opportunity to generate attractive returns while mitigating risks.”
These unique characteristics have been instrumental. So far WeGro has already onboarded over 3000 farmers and financed over $3.6M worth of projects.
“With its steadfast commitment to sustainability, transparency, and financial inclusion, WeGro has emerged as a trailblazer in the agrotech industry, revolutionizing how agriculture is funded and managed in Bangladesh,” added Md Mahmudur Rahman. Having extensive coverage across 20 districts in Bangladesh has helped it become a reliable and well-known partner for farmers. And this vast network has proven WeGro’s concept regarding effective scalability.
Overcoming the Challenges
The challenges WeGro faced at the beginning were slightly different than what they currently face.
Initially, they faced limited market awareness about agricultural fintech, securing funding to start operations, building networks of farmers and investors, adapting to a dynamic regulatory landscape, etc.
They overcame these initial challenges through perseverance, strategic planning, and a customer-centric approach. But in the world of startups, there’s no such thing as “problems being permanently solved.”
As the company grew, they started facing new challenges. “We are currently tackling issues such as establishing trust among farmers and investors, ensuring efficient supply chain management, navigating complex regulatory frameworks, and scaling our operations effectively,” said Md Mahmudur Rahman when asked about the current issues. All of these issues are making the expansion difficult for WeGro, as navigating through the above-mentioned requirements and issues can be pretty time and effort-consuming.
Hardest Nut to Crack – Fund Collection
For any startup, fund collection is one of the, if not the most, challenging and important hurdles to cross. WeGro has showcased incredible resilience in this case. With the recent funding from Accelerating Asia, the company had raised 100,000 dollars worth seed funding initially. In the budding stage, WeGro secured its funding through angel investors and venture capital, demonstrating their growth potential and positive impact.
Mahmud shed light on why WeGro could stand out among so many other applicants, “To obtain Asia’s Accelerating Cohort 8 funding, we showcased our innovative model and scalability. These funds will fuel technology enhancements, expand farmer networks, and sustainable practices.” This presentation on impacting the often neglected agriculture sector helped WeGro get the funding it needed from Accelerating Asia.
Advice for Potential Entrepreneurs
Every up-and-coming entrepreneur wants to know about the entrepreneurial experience. The advice successful entrepreneurs can give newcomers can help them learn about the reality of entrepreneurship and which scenarios to watch out for.
In this interview with Mr. Mahmudur Rahman, he shared valuable insights for aspiring entrepreneurs. When we asked him about the critical ingredients for success, he emphasized the importance of belief in one’s idea and having a clear vision. He emphasized passion and determination, serving as the driving forces behind any entrepreneurial journey.
A business needs different kinds of people with different qualities to create a multifaceted value. He also highlighted the significance of building a diverse and talented team that shares the entrepreneur’s vision and complements their skills.
Collaboration and teamwork are essential elements in the recipe for success, and aspiring entrepreneurs should view failure as a learning opportunity and remain adaptable in facing challenges.
Mahmudur encourages them to stay focused on their goals while being open to pivoting if necessary, emphasizing cultivating a strong network of mentors, advisors, and industry experts.
Ultimately, he underlined the power of perseverance as a crucial trait for those venturing into the entrepreneurial world. This can be the most essential advice aspiring entrepreneurs can take from him as the road to starting a business is never a straight line, and having the grit to see the journey of starting a business through is essential to compete in any business sector.
The success WeGro Global has attained within such a short span of time is highly commendable. The magic mantra that has set WeGro apart from its counterparts is nothing but its innovative and scalable Shariah-based business model and its unwavering determination to change the lives of farmers in Bangladesh.