THRIVE AGRIC’S INVESTMENT SAGA OF 2020 (PART 1).
This issue has since been resolved. Read the concluding part here.
The Bait
Three years ago in 2017, a new start up called Thrive Agric, founded by Uka Eje and Ayodeji Arikawe cropped up in Nigeria. Their business was focused on funding small scale farmers by sourcing funds through crowdfunding in the Nigerian space. The company was able to go through series of fund raising, notably from Google’s Developers Launchpad, Ventures Platform, Telefonica etc.
But, it wasn’t until 2019 that they were incubated by Y Combinator, the popular American based startup accelerator. Being incubated by Y Combinator meant they received seed money to the tune of $150,000 for a 7% equity in the startup.
The Y Combinator funding as well as the different accolades and commendations (especially from the Nigerian Vice President, Yemi Osinbajo) received from various quarters, helped to fortify and bolster the image of Thrive Agric.
The Promise
Based on a business model that allows them to source money from the Nigerian public as investments, Thrive Agric has been taking money from public investors to start up farms all over Nigeria. In return, these investors are paid back with their initial capital plus a fixed return on investment at the end of a farm cycle.
Thrive Agric claims on their website that they have raised over 4 million birds and produced over 170 thousand metric tonnes of grains.
The Reality
Having heard about Thrive Agric since early 2018, I didn’t invest with them until the start of 2020. Why the reluctance? I was skeptical and considering my present predicament, that skepticism is being justified with how my first investment with them is panning out.
I invested in two rice farms and a chicken farm showcased by Thrive Agric. I bought several units of those with the intention of getting my investment plus ROI in the next 6 and 9 months.
Mid-way into the year, stories of non-payment by Thrive Agric to earlier investors emerged. Some investors were paid, while some had their payments delayed. Some were not even paid at all.
However, due to the fact that my investments with Thrive Agric were maturing in September 2020 through to December 2020, I felt whatever issues they were having back in May/June would have been sorted out before my due dates.
So in September, a week to one of my investments maturing, Faith Ogarabe, one of Thrive Agric’s growth team, called me (after I reached out to them via email and chat), stating that my payouts will be delayed due to non-payment from their off-takers.
No definite time has been communicated to me on when I should expect my payment. All efforts to contact Thrive Agric after that initial discussion have proven abortive.
No replies to my emails and my chat sessions have been abruptly ended with no replies whatsoever if I try restarting the session.
Angered investors have taken to social media to state their grievances. On so many occasions, comments and posts have been reported and deleted by Thrive Agric instead of tackling these issues and coming up with modalities to pay their investors.
Despite everything, Thrive Agric has kept mum with no official statement released.
Back in February 2020, in a Guardian.ng publication by Femi Ibirogba (Head, Agro-Economy), covering the issue of agricultural crowdfunding scams and how to detect them, Ayodeji Arikawe said this,
I think basic due diligence should start from checking out the team; probably visiting the farms themselves; how long they’ve been doing this, and their [managers’] backgrounds. Also, investors might want to go through the hard work of looking out for consistency in communication among other things that help guts judgment.
Isn’t it strange that the same Ayodeji Arikawe that talked about consistent communication, is a co-founder to a startup that has shown zero communication since this whole saga started?
The Way Forward
With everything that has ensued in the past couple of weeks, I can only advise (as this is my first experience with them) that people should be wary of the company and its associates.
This is me, calling out Thrive Agric, founded by Uka Eje and Ayodeji Arikawe, until they do the needful.
I am open to dialogue. However, the only dialogue that will result to me recanting these statements is if Thrive Agric comes out with an official statement AND I get paid what I am due.
Until then, I will be updating any progress or non-progress made with Thrive Agric via this medium (pun not intended).
In the meantime, aggrieved investors have taken to Twitter with the hashtag #ThriveAgricPayYourInvestors. Please, support the fight by retweeting the hashtag. In a couple of days, I will be creating a LinkedIn hashtag as well.
You can also follow the discussion on the following threads on Nairaland:
https://www.nairaland.com/5358517/digital-agriculture-investment-platforms-options/336
If you have been a victim of Thrive Agric, founded by Uka Eje and Ayodeji Arikawe, please leave a comment below telling us your experience.
This article is part of a series.
For Part 2, read it here.
For Part 3, read it here.
For Part 4, read it here.
For Part 5, read it here.
For Part 6, read it here.
This issue has since been resolved. Read the concluding part here.
