Kyosk Digital Services (www.Kyosk.app), a digital-first and data-led distribution platform, has announced today its expansion into the African fresh produce market with the launch of its Farm & Fresh line of business. This comes on the heels of Kyosk’s recent acquisition of KwikBasket, a prominent player in the agricultural industry known for its expertise in the distribution of agricultural produce and for providing valuable services and solutions to farmers, commercial kitchens, and other stakeholders in the food chain.
Raphael Afaedor, Co-Founder and CEO of Kyosk Digital Services, says: “This acquisition marks a major milestone for Kyosk as we broaden our footprint in the fresh produce market in Africa and enhance our offering to cater to the needs of farmers, retailers, kitchens, eateries, and other consumers. With KwikBasket’s extensive expertise and resources, we are strategically positioned to unlock the full potential of farming in Africa and create a fair and efficient marketplace that benefits all stakeholders in the food chain.
“This expansion presents a unique opportunity for Kyosk to leverage its digital-first and data-led distribution platform to revolutionise the way fresh produce is sourced, distributed, and enjoyed in Africa.”
With over 250,000 registered small retail outlets, Kyosk has established a strong presence across 42 territories in Kenya, Uganda, Tanzania, and Nigeria. This extensive network has created employment opportunities for over 3,000 Africans, contributing to the economic growth of these communities.
With a user base of 1,500 registered commercial kitchens, KwikBasket has made a significant impact on the livelihoods of over 5,000 farmers, providing them with a reliable marketplace to showcase their produce and generate income. The platform’s commitment to ensuring a seamless farm-to-kitchen experience has resulted in the successful delivery of 100,000 orders, facilitating the direct transfer of fresh, high-quality produce with over 100 SKU options.
A market growing at 5% to 6% annually but composed by small retail outlets
The African retail market is valued at approximately $600 Bn and is projected to grow at a rate of 5% to 6% annually.
Kyosk focuses on serving small retail outlets and traditional retailers, which account for over 60% of retail trade in Africa. These retailers are primarily located in low-income, informal urban communities and have historically been inadequately served. They face high transportation costs and have difficulty accessing manufacturers and distributors due to multiple layers of intermediaries. As a result, small retailers often experience frequent stockouts and lost revenue while facing limited access to credit.
The Kyosk platform revolutionises how small retail outlets (kiosks), farmers, and their communities in Africa connect with high-quality and affordable goods and services through digitised value chains. Retailers can order products directly from FMCGs without the need for intermediaries, gaining access to competitive prices and cost savings. Kyosk has also expanded its operations to include electronic goods, health, and beauty products, reflecting its commitment to diversifying its offerings and catering to a wide range of consumer needs.
Moreover, Kyosk extends its support beyond product distribution; it collaborates with financial institutions to facilitate its outreach to traditional shops, farmers, and other businesses. It enables them to provide services such as credit and insurance, contributing to the financial inclusion of underrepresented businesses and individuals, and fostering economic growth and stability.
With this strategic expansion into the fresh produce market, Kyosk is poised to revolutionise the distribution and enjoyment of fresh produce in Africa.
Solving great problems through digital in all stages of the value chain
In many regions on the African continent, farmers face numerous challenges due to fragmented and inefficient distribution chains for agricultural produce. Farmers often struggle to reach end-consumers, leading to significant production losses, low income, wastage, and high food prices. Kyosk’s Fresh line offers farmers access to improved yields, consistent market access, fair pricing, essential information and insights, and agri-inputs. By empowering farmers with these resources, Kyosk seeks to support farmers’ growth and success in the agricultural sector.
Additionally, Kyosk Fresh will cater to the needs of restaurants, eateries, and other customers by providing a consistent supply of a wide variety of high-quality products. Kitchens and eateries often face several challenges due to long lead times in the supply chain. Some of these key challenges include food safety and quality concerns, food wastage, high logistics costs, and delays in fulfilling customer orders.
Through streamlined processes, optimised logistics, and enhanced inventory management, Kyosk Farm & Fresh can reduce many of these obstacles. This will enable kitchens and eateries to maintain stability and competitiveness in terms of pricing while ensuring food safety, transparency, and traceability throughout the supply chain.
Rebranding uLima platform to Kyosk Farm
As part of the launch of the Farm & Fresh line of business, the uLima digital platform will be rebranded to Kyosk Farm. uLima was a platform that provided farmers with quality inputs, localised market information, and market linkage.
Kyosk Farm will now build upon the foundation of uLima, leveraging its existing features and functionality while enhancing the overall user experience.
For farmers, Kyosk Farm will offer improved yields by providing access to information, insights, and agri-inputs, such as fertilisers, and financing. It will enable farmers to connect with consistent market access and fair pricing, ensuring sustainable income and growth opportunities for their businesses.