Home Africa Koa raises $10M to build Africa’s largest cocoa fruit factory

Koa raises $10M to build Africa’s largest cocoa fruit factory

Koa raises $10M to build Africa’s largest cocoa fruit factory

Today, the Swiss-Ghanaian start-up declares the completion of its Series A fairness spherical in addition to the closing of further senior and junior rating debt for a complete of $10 million of financing from each institutional and personal buyers.

We are excited that we won strong and reputable partners for the further growth of our business. It shows that our way of responsibly doing business and our value proposition are meeting the pulse of the time. With these investments, we will be setting up Africa’s largest cocoa pulp processing plant in West Africa which is the world’s largest cocoa growing region,” Benjamin Kuschnik, Co-Founder and Group Finance Director of Koa, says.

Founded in 2017, Koa is disrupting the cocoa trade by means of its progressive upcycling of the cocoa fruit. Koa is the primary firm in West Africa to have unlocked a brand new worth chain across the up to now discarded cocoa pulp. Working intently with cocoa smallholders, Koa reduces on-farm meals waste across the cocoa fruit, generates further farmer revenue whereas on the similar time bringing distinctive new components to the meals and beverage trade for functions starting from chocolate, confectionery, ice cream to drinks.

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Bringing collectively personal and institutional buyers into an impactful enterprise

To finance its subsequent enlargement plans, Koa has efficiently accomplished its Series A spherical elevating a complete of $4.7 million in fairness.

The funding spherical was led by Haltra Group, a Luxembourg-based household funding firm which is joined by a gaggle of different like-minded household workplaces all sharing Koa’s conviction to set up a enterprise that creates actual impression whereas being worthwhile and sustainable on the Triple Bottom Line “People, Planet and Profit”.

As a family investment group focused on managing assets and having a positive impact, we promote the emergence of disruptive and sustainable economic models for future generations. We are delighted to participate in this exciting venture at the edge of Circular Economy and Food Transition, two of our core investment themes, and to contribute to impacting the local communities in Ghana,” Matthieu Baumgartner, Co-Founder of Haltra, says.

The fairness spherical is complemented by a $3.5 million long-term debt facility from impression funds and $2.0 million of shareholder loans. The long-term debt facility is co-led by the IDH Farmfit Fund and the Landscape Resilience Fund coming collectively in a singular partnership for this funding with the purpose of enhancing smallholders’ incomes and their transition to local weather resilient agriculture.

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“Koa’s innovation makes it possible for farmers to increase their living income significantly by selling their waste product, without having to make additional investment costs at their farms,” Barbara Visser, COO of the IDH Farmfit Fund, says. “Koa moreover goals to create gender equal employment alternatives in rural communities and targets to attain 40% ladies farmers, that are according to core targets of the IDH Farmfit Fund. We are very happy that as we speak’s funding will assist Koa in accountable worth creation within the cocoa provide chain.

These sorts of disruptive and progressive options are key to catalyse the system change that’s wanted to enhance the lives of those cocoa farmers.” Looking at strengthening cocoa farmers’ local weather resilience, Urs Dieterich, Managing Director of the Landscape Resilience Fund, emphasises that “increasing investment in adaptation will save and improve many lives in the communities hardest hit by climate change. That’s what today’s investment is all about – supporting an inspiring, socially and environmentally grounded business to reach greater heights and have even more climate impact.”

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Increasing the manufacturing capability tenfold to meet buyer demand

Koa is investing the funds from the debt financing into a brand new manufacturing plant in Akim Achiase, within the Eastern Region of Ghana. This can be Koa’s second factory which is already in building and is deliberate to begin its operations by the top of 2022. “As the food industry is discovering the cocoa fruit, we need to grow in line with the demand from our customers. Once fully operational, the new factory will increase our production capacity by tenfold, while generating 250 new jobs in rural Ghana and allowing us to extend our cocoa fruit upcycling to an additional 10,000 cocoa farmers,” Daniel Otu, Production & Operations Director at Koa, explains.