New export channel for smallholder farmers as Iris Fresh secures Vumela Fund growth capital

Growth funding secured by Cape Town-based fresh produce exporter Iris Fresh could create greater market opportunities for smallholder farmers, many of whom rely on the company to access premium international markets.

By Lebogang Mashala, editor at African Farming

For the more than 80% of Iris Fresh’s produce sourced from small- and medium-scale farmers, the company’s expansion could mean increased access to structured markets, greater volumes and opportunities to participate in the higher-value export end of the fresh produce industry.

Iris Fresh has secured growth funding from the Vumela Fund to support operational expenditure and working capital as the business enters its next phase of expansion. The investment comes at a time when global demand for premium fresh produce continues to grow, particularly in high-value categories such as berries, exotic fruits and speciality vegetables.

For African growers, however, accessing these markets remains challenging. Fragmented supply chains, inconsistent quality, post-harvest losses, limited market information and dependence on intermediaries can constrain both growth and producer returns.

Iris Fresh aims to address some of these challenges by aggregating produce from growers across South Africa and neighbouring countries and connecting them to international markets.

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Creating opportunities for growers

For Iris Fresh, the funding will strengthen its capacity to coordinate sourcing, aggregate volumes and maintain rigorous quality standards as it expands its international market presence.

This is particularly significant for smaller producers, who often struggle to meet the volume, consistency and quality requirements of major export markets on their own.

By aggregating produce from multiple growers, Iris Fresh can create a more structured route to market while enabling smaller farmers to participate in opportunities that may otherwise be beyond their reach.

The company currently supports more than 150 indirect jobs and sources approximately 80% of its produce from small- and medium-scale farmers. As Iris Fresh expands its operations and market reach, the potential benefits could extend further across its grower network.

“This funding marks an important milestone in our journey at Iris Fresh. It allows us to invest in growing the business, unlocking new opportunities, and reinforcing our commitment to building a future-focused agricultural business,” said founder Sandeep Valodia.

Valodia added that the programme’s network, expertise and growth opportunities are already delivering value to the business, with the impact expected to increase as Iris Fresh scales.

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South Africa’s fresh produce industry already plays a major role in the country’s agricultural export economy, with fresh fruit and vegetables accounting for the largest share of the country’s US$15.1 billion agricultural exports.

For smaller farmers, however, the value of this export opportunity depends not only on international demand, but also on having reliable channels through which they can access those markets.

Iris Fresh’s expansion therefore has implications beyond the growth of one exporter. By strengthening its sourcing network and export capacity, the company aims to create a more reliable link between African growers and premium international markets.

Its growth journey highlights how access to business development support, market access and appropriate growth capital can help build stronger connections between smallholder producers and global food markets.

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From business development to growth capital

The fresh produce exporter joined the FNB SME Growth Exporter Programme in July last year to strengthen its export capabilities and expand its international market reach.

Through the programme, Iris Fresh has benefited from strategic advisory services, operational diagnostics, mentorship, financial guidance and market-access support delivered by Edge Growth.

The business has now progressed to the next stage of its growth journey, securing developmental funding through the Vumela Fund.

Established in 2009 by FNB Business Banking in partnership with Edge Growth, Vumela combines developmental funding with business enablement to support high-potential small and medium-sized enterprises as they grow.

The progression from business development support to growth capital demonstrates the value of an integrated SME support ecosystem, where assistance evolves alongside a business’s needs and maturity.

“SMEs do not grow through funding alone. They need the right combination of capability, market access and capital at the right stages of their journey,” said Palesa Moeletsi of FNB.

“Iris Fresh is a powerful example of what FNB is seeking to enable through our SME ecosystem, supporting businesses to strengthen their foundations, access new markets and, when they are ready, unlock the capital required to scale.”

She said the benefits of business growth extend beyond the entrepreneur to jobs, supply chains and the broader economy.