Looking to invest in Agric-tech company Farmcenta?
And you want to know if this company is definitely worth your investment?
In this article, we’ll be looking at the company behind Farmcenta, their business processes, and how risky it is to invest with them.
This review article doesn’t however serve as financial or Investment advice, so whatever decision you take would be at your own discretion.
That said, let’s dive in.
What Is Farmcenta All About?
Farmcenta is an Agri-tech company that crowdfunds finance to support local farmers in Nigeria.
The company promises investors mouth-watering returns on investment, in exchange for the risk of investing their money.
The company behind Farmcenta is known as Farmcenta Global Investment Limited, and based in Lagos State, Nigeria.
How Does Farmcenta Make Money?
Farmcenta makes money by aggregating and selling farm harvests from its partner farms.
All funded farmers are partners of Farmcenta, who then handles the whole supply chain of the farm produce.
Farmcenta in turn, shares its profits with its investors, per unit per farm.
How to Invest in Farmcenta
Investing in Farmcenta is as easy as registering on their website and then choosing from the available agric funding deals.
Apparently, Farmcenta has a parent company, CentaVest, that handles all investment in it’s agric business, as well as other allied interests.
So, to invest with Farmcenta, you’d have to register on the CentaVest website to have access to your investment dashboard.
Farmcenta’s agric Investment portfolios are mostly short-term, with tenures ranging from 6 months to 9 months.
How Much ROI Does Farmcenta Offer?
ROIs on Farmcenta range from 15% to 35%. The longer the investy tenure, the higher the returns.
Is Farmcenta Legit or Scam?
There is no way to know definitively if Farmcenta is legit or a scam.
However, there are a few issues that could make investors feel sceptical about investing in Farmcenta.
Firstly, there is not enough clarity about how the company handles the whole investment and agric processes.
How exactly are investors funds used?
Where are the farm projects situated and what rights do investors have concerning the agric projects invested in?
Unsurprisingly, there is no FAQ page on the Farmcenta website, which seems a bit fishy.
Also, Farmcenta claims to have partnered with Leadway Assurance to insure it’s business.
A look at the Leadway Assurance Agri-tech partnership log shows that Leadway only covers Farmcenta’s Agric Livestock, with the insured item specifically mentioned as Dairy Cattle.
What this means is that Farmcenta only insures the Cattle livestock part of its business.
It doesn’t cover the crop farms, the warehouses, the logistics, etc; unlike how Agrorite impressively does.
This shows how unserious the people at Farmcenta are, and how nonchalant they handle investors’ business, because at the end of the day, the investors own the business.
Can You Lose Money With Farmcenta ?
Farmcenta offers no guarantee on your funds, so whatever happens to the business, investors’ stand the chance to lose 100% of their investment.
Leadway Assurance has warned that its insurance partnership with any Agri-tech company doesn’t cover individual investors’ funds and returns.
Leadway only insures a specific aspect of the Agri-tech business for a specific period of time.
So, if you invest in Farmcenta Dairy Cattle business, and the cattle get diseased and die, Leadway Assurance would cover that loss for Farmcenta.
However, Farmcenta is not obligated to refund investors. The choice to refund investors’ for any loss is at the sole discretion of the people at Farmcenta.
No serious investor would want to be in a situation such as this.
Should You Invest in Farmcenta?
Honestly, I like that Farmcenta’s Agric portfolios are short-term with very good ROIs.
However, I just don’t trust the people at Farmcenta to handle my investment in the best possible way.
The risk of investing with Farmcenta is more than any profit I envision I could get in return.
That said, I’ll gladly not invest with Farmcenta.
I hope they prove me wrong though.