Trade
Analyze: Trade is a small industrials company based in Broken Arrow, OK, that connects buyers, sellers, and transporters of commodities in Ghana, focusing on direct trading and quality assurance.
Company Overview
Trade is an industrials company focused on the agriculture sector, with a primary operation in Ghana. Established in October 2016, the company connects buyers, sellers, and transporters of commodities, streamlining the trading process by eliminating middlemen. Trade ensures the quality of goods by weighing and grading every bag traded. They have a small but dedicated team of three based in Broken Arrow, OK, USA.
Y Combinator Involvement
Trade was part of the Y-Combinator's Winter 2017 (W17) batch, a prestigious startup accelerator. This involvement provided mentorship and funding opportunities, allowing Trade to refine its business model and expand its market presence. As a result, Trade successfully raised $750,000, with significant investment from Sam Altman.
Trading Platform and Process
Trade facilitates a straightforward buying process, allowing buyers to deposit payment, name their price, and have the platform manage the transaction. The company guarantees quality through a vetting process that includes requiring affiliates to post a security deposit. They ensure that maize is low-moisture and free of contaminants. Trade also offers direct delivery services and accepts returns of any rejected bags, ensuring a secure and reliable trading experience.
Operational Achievements
Trade has impressive operational metrics, with over 280,000 bags of maize sold and transactions worth GHS 15M processed. The company serves 250 buyers and manages 10 warehouses with 4800 sellers. In its first ten months, Trade traded goods worth over $1.2 million. Additionally, in its second supply hub in Ejura, they traded over 3000 bags in the first month. The company has a track record of trading over 43,000 bags from 993 farmers across 194 villages to 66 buyers.
Future Plans and Expansion
Trade has ambitious plans to diversify its offerings by selling different grades of maize and constructing custom warehouses in various villages. They also aim to support farmers with deferred payment contracts, fostering sustainable growth and stability in the agricultural supply chain. These initiatives are part of Trade’s vision to build Africa's Commodity Exchange.