December 14, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Only months after the inauguration of its new cocoa fruit factory in Ghana, Swiss-Ghanaian start-up Koa announced the completion of its Series B fundraising at $15 million committed from both existing and new investors.

Led by the Land Degradation Neutrality (LDN) Fund from global asset manager Mirova, an affiliate of Natixis Investment Managers with a $9 million commitment, this round also included new investors Regenerative Growth Fund 1, managed by the venture team at Zebra Impact, and the Swiss bank Mirabaud, among others, along with support from Koa’s existing shareholders such as Haltra, which led Koa’s Series A in 2021. 

“We are proud to have closed our Series B round in this challenging market environment for start-up funding while at the same time having found once more like-minded investors that are fully aligned with our mission and ambition to expand and create more impact around the cocoa fruit,” said Fabien Nizard, head of corporate finance and investor relations, Koa Switzerland AG.

Founded in 2017, Koa is the first company in West Africa to unlock a new value chain for discarded cocoa pulp, processing it into versatile ingredients for both foods and beverages. The company is a certified B Corp. that is redefining sustainability and social responsibility by working closely with cocoa smallholders in Ghana to empower them with the ability to earn additional income while making a positive impact on the planet. 

The company explained that the close of this Series B comes at a critical point following the launch of its new factory located in Akim Achiase in the eastern region of Ghana. With this new facility, the company stated that it is establishing a foundation to increase production tenfold while being able to engage with an additional 10,000 cocoa farmers. 

“The Series B round provides Koa with the opportunity to continue our growth path with our existing operations while at the same time allowing us to further invest into R&D and innovation projects that create a truly sustainable cocoa value chain,” said Francis Appiagyei-Poku, finance and administration director, Koa Impact Ghana Ltd.

With this new capital, Koa will scale its operations, develop more cocoa fruit products, and expand its marketing and distribution abilities, all while spearheading a shift into regenerative and climate-smart agriculture. 

Two factors – poverty and a lack of training in sustainable farming practices – are the main reasons why Ghana’s smallholders have trouble maintaining crop yields as climate change intensifies. By making regenerative agriculture a cornerstone of Koa’s strategic expansion, the company’s goal is to strengthen the resilience of cocoa farmers while reducing the carbon footprint of production. 

Taking its impact to the next level, this funding round allows Koa’s business expansion to extend the cocoa fruit upcycling and intensify regenerative agricultural practices – something that the company sees as critical in the face of deteriorating soil fertility and the high carbon footprint associated with traditional cocoa farming in West Africa. 

“We are happy to support Koa’s development, in line with the LDN Fund’s ambition, to support the development of a sustainable and fair economy in emerging countries where investment needs are huge and the economic potential attractive,” said Gautier Queru, managing director of Natural Capital, Mirova. “Koa definitely contributes to transforming the cocoa value chain to reduce food waste and provide local producers with additional income.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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