Avenews

Avenews operates a digital platform that provides working capital financing to agricultural small and medium enterprises, with its current offering focused on Kenya. Its products include an Agri Credit Line for recurring capital to purchase stock and inputs, Agri Supplier Financing that advances cash against unpaid invoices, Agri Buyer Financing that pays suppliers on behalf of buyers with later repayment, and Stockist Financing under which Avenews pays an approved distributor so a retailer can restock and repay on flexible terms. Applications are made through an online form; the company reviews applicant data, verifies documents, issues an offer, and disburses funds either to the borrower's account or directly to a supplier. Repayment restores the borrower's credit limit for the next cycle.

Eligibility criteria published by the company require an agri-SME to have operated for at least 12 months, to provide 12 months of M-PESA or bank statements, to turn over KES 300,000–1.5 million per month (product-specific), and to hold a business registration or county permit tied to a fixed location. Target users are described as agrovets, millers, processors, distributors and wholesalers in Kenya's midstream agricultural sector, a segment the company says traditional lenders have treated as too risky.

Earlier coverage describes Avenews as a fintech linking financial institutions with agribusinesses through a digital infrastructure connecting agri-trade activity to financial services. In that earlier model, trade interactions were recorded as verified assets on the Avenews Blockchain to build a digital economic identity for agribusinesses across the supply chain, enabling applications for working capital, loans and insurance, while financial institutions could digitize and distribute products such as credit cards, loans and insurance on the platform.

Founding story

Avenews was founded to support the agriculture sector by co-founders Shalom Ben-Or, Ishai Ben-Or and Ismail Kharoub. The Ben-Ors grew up in Israeli farming communities and were familiar with the challenges facing farmers and agribusinesses; Kharoub, an Arab Israeli from Jaffa with a background in complex information systems, served as CTO. The Kenya-focused financing business grew out of repeated accounts from millers, processors, distributors and wholesalers of tight cash flow and missed bulk purchasing opportunities.

Business model

Avenews extends short-term financing to agri-SMEs and, per its website, charges a markup only on funds drawn, stating there are no hidden fees. Funds are disbursed to the borrower or directly to the borrower's supplier or distributor, and are repaid within an agreed term, after which the credit limit is restored for reuse. In an earlier described model, the platform also enabled financial institutions to digitize and offer their own products such as loans, credit cards and insurance to agribusinesses on the platform.

Markup charged on the funds an agri-SME actually uses, with repayment within a set term; the company states there are no hidden fees.

Traction

The company reports supporting more than 250 agri-SMEs across 10+ counties in Kenya and funding more than KES 1.7 billion since launch, with payment delays cut by up to 70%. It also cites that 70% of financed businesses expanded operations and 55% created new jobs.

Latest developments

The company currently markets four financing products — Agri Credit Line, Agri Supplier Financing, Agri Buyer Financing and Stockist Financing — to Kenyan agri-SMEs, and lists partnerships with Visa, EAGC, KNCCI and GIZ.