Ghana: Cocoa company Koa raises $10m in equity and debt funding
Swiss-Ghanaian start-up Koa announced the completion of its series A equity round as well as the closing of additional senior and junior ranking debt for a total of $10 million of financing from both institutional and private investors.
Koa has raised a total of $4.7 million in equity. The investment round was led by Haltra Group, a Luxembourg-based family investment company which is joined by a group of other family offices.
The equity round is complemented by a $3.5 million long-term debt facility from impact funds and $2 million of shareholder loans. The long-term debt facility is co-led by the IDH Farmfit Fund and the Landscape Resilience Fund coming together in a unique partnership for this investment with the aim of improving smallholders’ incomes and their transition to climate resilient agriculture.
The funding will be used to accelerate Koa’s disruptive upcycling business around the cocoa fruit. The investments will allow Koa to scale its production capabilities tenfold and thereby allowing the company to cooperate with an additional 10,000 cocoa smallholders in Ghana.
“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.
“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 industry through its innovative upcycling of the cocoa fruit. Koa is the first company in West Africa to have unlocked a new value chain around the so far discarded cocoa pulp. Working closely with cocoa smallholders, Koa reduces on-farm food waste around the cocoa fruit, generates additional farmer income while at the same time bringing unique new ingredients to the food and beverage industry for applications ranging from chocolate, confectionery, ice cream to drinks.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.