Over the last 5-years our client had built one of the largest FMCG convenience food brands in Zambia. The company manufactured its products in China and imported near finished products for packaging and distribution in Zambia. The company faced growing competition in the sector, exposure to FX risks and stock-outages from supply chain issues due to delays at port. The decision was made to raise capital to construct a local production facility and bring all production in-house to mitigate these risks and drive regional expansion. Open Capital was engaged as sole lead arranger to structure and lead the transaction.
OCA supported the company to:
The original capital need was increased from US$ 2M to US$ 4M to ensure that the facility size was sufficient to fuel regional growth over the next 5 years. We helped the company raise US$ 4M of equity, convertible notes and warrants from an African impact investor and European strategic. The involvement of the strategic partner gives the impact investor a natural exit and warrants provide the founder with upside depending on performance.