Capital Raise for a Pioneering Coffee & Cocoa Cooperative in DRC

Sub-Saharan Africa
CrossBoundary Advisory
Agriculture & Agri-Business
Market: Democratic Republic of Congo
Steering a Kivu-based farmer cooperative through a capital raise focusing on investment materials and market analysis
Capabilities:
Capital raising
Deal structuring
Fundraising support
Team

About the Client

The Client is a farmer cooperative based in Eastern Democratic Republic of Congo, specializing in sourcing, processing, and marketing coffee, cocoa, and other agricultural products. The cooperative aims to scale its coffee output and diversify revenues by expanding into cocoa and other commodities. They have already raised multi-million dollars in working capital to achieve these ambitions and hold certifications like Organic, Rainforest Alliance, Fair for Life, and FairTrade.

Engagement

CrossBoundary Advisory provided transaction advisory support to the Client, primarily focusing on crafting compelling investment materials and performing a thorough market analysis of the coffee sector in the Democratic Republic of Congo (DRC). The coffee sector in Eastern DRC is a growing industry that presents both opportunities and challenges. Organic and specialty certifications, like those held by the Client, offer the potential for higher profit margins. However, the sector is also fraught with infrastructural challenges, requiring strong management and strategic investment to unlock its full potential.

Approach

CrossBoundary Advisory aimed to equip the Client with the essential tools and insights to successfully secure investment and realize their ambitious growth plans.
Investment Teaser: Created a succinct investment teaser to summarize the investment opportunity for prospective investors.
Investment Memorandum: Developed a comprehensive memorandum highlighting key success factors, market growth opportunities, competitive landscape, and the cooperative’s value proposition for investors.
Financial Model: Created a robust financial model to simulate the cooperative’s future performance, aiding potential investors in understanding the entity’s growth plans.
Virtual Data Room: Organized all relevant due diligence materials into an easily navigable virtual data room, facilitating the investment decision-making process for potential investors.

Results

Assisted the Client to raise a debt round for working capital needs from 3 different investors

Leveraged CrossBoundary’s relationships with 2 more investors to finance the Client’s CAPEX expansions

Positioned the company for fundraising by ensuring that they had high-quality investor engagement material