Inclusive Business Model Analysis: Japtini Asset Finance, Kenya

Japtini Asset Finance (Japtini) is a digital on-lending platform matching farmers to mechanization service providers (MSPs) and MSPs to asset financing partners. Their aim is to ensure 1) effective, efficient and affordable mechanization services for farmers; 2) increased access to asset financing for MSPs and; 3) efficient access to markets for MSPs. Japtini is part of Arila Group which organizes primary production, input supply, input finance, processing, energy, and logistics in and beyond smallholder value chains. Working with Alluvial Limited (a sister company), Japtini plans to pilot their service with 10,000 block farmers in Kenya before expanding within East Africa to support farming operations covering rice, maize, soyabean, sorghum and sesame value chains. In our case study report, you will find our analyses covering the following:

• Farm mechanization requirements of the pilot amount to a USD 10 million asset financing need and show promising value for all players in the ecosystem
• While the assets present positive earning potential for MSPs, the business case is still unproven. Collaborative testing with other players in the ecosystem is advised
• The model presents a positive business and impact case. In order to meet these results, Japtini will need to raise funding to support the business’ operations in the initial loss-making years
• The pilot phase will be essential to overcome key barriers to scale and define Japtini’s pathway to scale the model