Digital Africa Makes First Ethiopian Investment in Agritech Startup ChipChip

Digital Africa, a subsidiary of French development finance institution Proparco, has made its first investment in Ethiopia, backing agritech startup ChipChip.

Founded in 2023, ChipChip connects Ethiopian farmers with households and commercial buyers through a digital platform that uses data and artificial intelligence to improve food distribution. The company combines agricultural sourcing with social commerce, allowing consumers to buy fresh produce at discounted prices by placing orders in groups.

The investment expands Digital Africa’s activity in East Africa and supports ChipChip’s plans to improve its technology and grow its network of farmers and business buyers.

Group Buying Connects Farmers and Consumers

ChipChip’s mobile app allows users to create groups around specific products and invite friends, family or other shoppers through shared links. Users can also join existing groups.

When a group reaches the required number of participants, members can complete their orders at a discounted price, with produce delivered to their doors. The platform sources fresh produce from local farmers and suppliers.

Group leaders can also collect orders and earn rewards. The app is available on iOS and Android.

The model uses collective purchasing to attract demand and coordinate orders. By connecting buyers with local suppliers through one platform, ChipChip aims to reduce inefficiencies between agricultural production and the consumer market.

Funding to Expand ChipChip’s Platform

Bruk Getahun, ChipChip’s co-founder and chief marketing officer, said the investment would help the company strengthen its platform, develop its data capabilities and expand its network of farmers and business-to-business buyers.

The planned improvements will support the startup’s efforts to serve more agricultural producers and commercial customers across Ethiopia.

Digital Africa Investment Associate Sokhna Mbaye said the company had identified a persistent gap between farms and households, where inefficiencies in distribution can reduce the value farmers receive while increasing food costs for consumers.

ChipChip’s model targets both sides of that problem by improving how produce moves from suppliers to buyers.

Digital Africa Targets Early-Stage Startups

Digital Africa was established to support African entrepreneurship through a co-development approach involving African and international partners. In 2024, it repositioned itself as a dedicated pre-seed and seed investor, focusing on startups that need early capital to develop their businesses.

In May, the organisation launched the DA Seed Fund, a pan-African closed-end investment vehicle targeting between €30 million and €50 million. The fund targets technology-enabled African startups that sit between pre-seed financing and larger institutional investment rounds.

ChipChip’s investment brings that strategy into Ethiopia’s agricultural sector, where digital tools could help address distribution challenges affecting farmers, retailers and households.