BusinessFundingNews

Tomato Jos Raises €3.9M in Series A Funding

Tomato Jos, a Kaduna, Nigeria-based agro-processing company focused on the local production of high-quality tomato paste for the African market, raised €3.9m in Series A funding.

The round was led by Goodwell Investments, via its West Africa partner Alitheia Capital, with participation from Acumen Capital Partners and VestedWorld.

There’s a top-line statistic on tomato farming in Nigeria which captures the state of the sector: around 45% of harvested tomatoes go to waste in Africa’s most populous country.

That reality is down to a mix of fundamental infrastructural gaps including inefficient cross-country transport systems and a lack of storage facilities which means local farmers can neither store the crops or distribute them at scale. As such, despite being Africa’s second largest producer, Nigeria still relies on importing around half of tomatoes consumed locally.

Related Articles: African Food Prize for Innovation in Agriculture – $100,000

But Tomato Jos, a six-year agro-processing venture, is winning investor backing to fix that problem. The company has raised $4.2 million in a Series A round led by Goodwell Investments through Alitheia Capital, its West African partner, with participation from Acumen Capital Partners and VestedWorld.

Since its founding Tomato Jos, which operates in Kaduna, northern Nigeria, has partnered with smallholder farmers to improve agricultural yield and efficiency. Now buoyed by new funding, Tomato Jos plans to transition into processing and distribution of tomato products amid local demand-supply gaps.

Related Articles: Agritec Africa – International Exhibition & Conference on Agriculture Technology

The company’s plans include a processing plant with target capacity of 24 tons of tomato paste daily. Mira Metha, founder of Tomato Jos says the first five years of the company were focused on working with smallholder partners to improve production and put “a really solid foundation” for supply in place.

The importance of  sustainable produce supply models is best captured by the struggles of Aliko Dangote, Africa’s richest man, whose tomato-paste factory had operations shuttered for over two years due to a price dispute with local farmers. Following a resolution of that dispute, the factory resumed operations last month with a processing target of 100 tons daily.

Related Articles:Ghanaian startup secure $50k funding from Agriculture Africa Accelerator

Tomato Jos not only produces the best quality tomato products but they also leave a foot print in the lives of those they encounter every day. At Tomato Jos they understand the importance of the combination of both quality agricultural inputs and an expert team to educate the farmers on the application of these inputs.

Source: https://qz.com/africa/1858646/tomato-jos-raises-4-2-million-from-goodwell-investments/

Attention Venture Capitalists and investors GFA needs your help. Click here

GetFundedAfrica is a technology-based, business information platform operated by Afriscaper Research & Consulting Limited with a mission to reduce barriers to funding for African businesses. GFA matches investor ready, African & African-Diaspora owned companies with global investors, leveraging market research, industry data and news aggregation

This image has an empty alt attribute; its file name is Dr-Vincent-Nwani.jpeg

Introducing our latest feature writer, Dr. Vincent Nwani who recently wrote an insightful article called ” BOOSTING FOOD SECURITY IN NIGERIA THROUGH INVESTMENT IN POULTRY PRODUCTION

If you would like to raise funding for your next big business or project in Africa send us an email on mary@getfundedafrica.com

Nichole Manhire

Is the productive executive for the media department at GetFundedAfrica

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button