Swiss-Ghanaian start-up Koa has successfully completed a USD$15 million Series B equity round, led by the Land Degradation Neutrality (LDN) Fund of Mirova, a global asset manager dedicated to sustainable finance. This follows the recent inauguration of its new cocoa fruit factory in Ghana, and will bolster the company’s ongoing efforts to upscale its operations and promote regenerative and climate-smart agriculture.
Koa is the first company to adopt a new way of upcycling cocoa fruit, previously discarded in West Africa. The company works closely with cocoa smallholders in Ghana to reduce on-farm food waste and generate additional income for farmers. This approach also supplies the food and beverage industry with new ingredients derived from cocoa fruit.
“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.”
The recent financing round, comprising contributions from new investors such as the Regenerative Growth Fund 1, managed by the Venture Capital team at Zebra Impact and Swiss bank Mirabaud, alongside continued support from existing shareholders, positions Koa for strategic expansion. The Regenerative Growth Fund 1 focuses on naturetech solutions to address nature loss and climate change.
“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 head of corporate finance and investor relations at Koa Switzerland AG, Fabien Nizard.
Koa: Scaling operations and enhancing sustainability
Koa’s Series B funding coincides with the opening of a new factory in the eastern region of Ghana, Akim Achiase. According to the company, this facility will increase production tenfold and collaborate with an additional 10,000 cocoa farmers. With equity financing, Koa can scale its operations, develop new cocoa fruit products, and expand its marketing and distribution efforts.
“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,” commented Gautier Queru, managing director of natural capital at Mirova. “Koa definitely contributes to transforming the cocoa value chain to reduce food waste and provide local producers with additional income.”
On top of this, Koa will focus on intensifying regenerative agriculture practices, vital in addressing soil fertility issues and the high carbon footprint of traditional cocoa farming in West Africa.
“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,” concluded finance and administration director at Koa Impact Ghana Ltd, Francis Appiagyei-Poku.
