Target Information

Sofia Angels Ventures (SAV), a €13 million venture fund based in Sofia and supported by the European Investment Fund (EIF), proudly announces its investment in Almacena. This company specializes in enhancing the logistics of the coffee trade through its innovative digital platform that offers essential services such as financing, insurance, logistics, and compliance, utilizing blockchain technology for secure and transparent transactions.

Almacena's mission is to streamline the coffee supply chain by connecting producers directly with international buyers, thereby providing complete product traceability. Operating across ten countries in Africa and Latin America, Almacena manages 12% of Africa’s coffee export capacity and serves a buyer network encompassing 14 countries, including EU member states and the USA.

Industry Overview

The coffee industry is a vital sector within global trade, valued at approximately $35 billion. It has a significant impact on the economies of producing countries, where coffee serves as a primary export. With increasing global demand for coffee, innovative technologies in logistics have become crucial in addressing inefficiencies in the supply chain.

In recent years, the industry has witnessed a digital transformation, with numerous companies adopting technology to improve traceability and logistics. This shift is particularly vital in regions like Africa and Latin America, where logistical challenges often hinder the profitability and quality of coffee production.

Moreover, sustainability in the coffee supply chain has gained prominence, with buyers increasingly seeking ethically sourced products. This trend has encouraged companies like Almacena to implement blockchain technology, enabling transparency and potentially fostering better trading conditions for producers.

As the coffee market continues to grow, integrating digital platforms that streamline processes and enhance transparency is expected to be a significant driver of future industry success.

Rationale Behind the Deal

The investment in Almacena aligns with SAV's commitment to supporting ventures that foster sustainable and impactful business practices. By leveraging blockchain technology, Almacena is positioned to improve efficiency and transparency within the coffee supply chain, which is a crucial aspect of SAV’s investment strategy.

This partnership seeks to empower Almacena to further expand its technology and geographic footprint, enhancing its service offerings and penetrating new markets such as tea and cocoa. The anticipated growth in revenue and market presence underscores the potential returns on investment.

Investor Information

Sofia Angels Ventures is a prominent venture fund in Bulgaria, focusing on angel and private co-investments driven by innovation and sustainability. With a total fund of €13 million, it has a mission to back startups that contribute to positive societal impacts through technology and transparency in various sectors.

By partnering with companies like Almacena, SAV is reinforcing its dedication to fostering economic growth in the region while contributing to the development of efficient supply chain solutions within the broader agricultural markets.

View of Dealert

As a deal analyst, it is clear that the investment in Almacena presents a robust opportunity for both SAV and the coffee industry at large. Almacena's innovative approach to logistics and transparency not only addresses current inefficiencies but also positions the company favorably within a growing market.

The projected growth in revenue and positive cash flow by 2026 further solidifies the attractiveness of this investment. The bridge financing will enable Almacena to enhance its platform and potentially diversify into other commodities, thereby amplifying its overall market presence and influence.

Furthermore, the alignment of SAV’s investment values with Almacena's mission signifies a strategic partnership that could lead to meaningful advances in sustainable supply chains. This not only benefits investors but also contributes positively to the communities involved in coffee production.

Overall, the investment in Almacena is expected to yield significant benefits, making it a compelling consideration for sustainability-focused investors and a notable player in the competitive landscape of commodity trading.

View Original Article