digital Africa, the investment arm of French development finance institution Proparco, has made its first investment in Ethiopia, backing agricultural technology start-up ChipChip to expand its digital platform connecting farmers with consumers and businesses.
The investment will support technology development, strengthen ChipChip's data infrastructure and expand its network of farmers as it seeks to improve the distribution of agricultural produce across the country.
Founded in 2023, ChipChip operates a digital marketplace connecting Ethiopian farmers and suppliers directly with households and businesses through mobile technology, data analytics and artificial intelligence.
The company uses a group-buying model that allows consumers to combine orders for fresh agricultural produce and access discounted prices when purchases reach predetermined volumes.
Users can create purchasing groups through its mobile application and invite other customers to participate.
The platform sources produce from local farmers and suppliers, aiming to reduce intermediaries in the agricultural distribution chain and improve market access for producers.
It also allows individuals to register as group leaders, coordinating purchases within their communities and earning rewards for facilitating transactions.
Bruk Getahun, co-founder and chief marketing officer at ChipChip, said the investment would enable the company to strengthen its platform, develop its data capabilities and expand its network of farmers and business buyers.
Sokhna Mbaye, investment associate at Digital Africa, said ChipChip was addressing inefficiencies between agricultural producers and consumers, where value is frequently lost and food prices rise before products reach households.
She said the investment reflected confidence in the company's business model and its potential to scale in Ethiopia.
Digital Africa is a subsidiary of Proparco, the private-sector financing arm of France's Agence Française de Développement Group.
It focuses on supporting African technology startups, particularly businesses developing solutions for underserved markets.
In 2024, the organisation repositioned itself to focus on pre-seed and seed-stage investments. In May 2026, it launched its DA Seed Fund, targeting between €30 million and €50 million to finance technology-enabled businesses across Africa.
Neither Digital Africa nor ChipChip disclosed the investment amount, ChipChip's valuation or the number of additional farmers and business buyers it expects to onboard.
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