Capital Markets

American firm gets Sh2.8bn for Kilifi tree growing venture

trees

Komaza staff at the processing plant in Kilifi County on May 4, 2019. PHOTO | KEVIN ODIT | NMG

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Summary

  • A Kenya-focused American start-up, Komaza has secured new Sh2.8 billion funding to expand its partnership with the smallholder farmers in Kilifi it has engaged in commercial tree farming.
  • Established three years ago under a Sh990 million financing plan, Komaza, chooses commercially viable tree species via a micro-forestry business model where farmers use their parcels of land to cultivate the trees for cash.

A Kenya-focused American start-up, Komaza has secured new Sh2.8 billion funding to expand its partnership with the smallholder farmers in Kilifi it has engaged in commercial tree farming.

The tech-based enterprise that has contracted 25,000 farmers in a six million exotic tree seedling project said its Series B equity financing was co-led by Novastar LPs AXA Investment Managers (through the AXA Impact Fund: Climate & Biodiversity) and the Dutch development bank FMO, with further participation by Mirova’s Land Degradation Neutrality Fund.

“This landmark Series B financing provides the firepower now to replicate and scale the business across Africa,” said Novastar Ventures founding partner Steve Beck.

Established three years ago under a Sh990 million financing plan, Komaza, chooses commercially viable tree species via a micro-forestry business model where farmers use their parcels of land to cultivate the trees for cash.