Dealflow | June 8, 2021

Small business investor iungo capital inks 30th deal – and first exit

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, June 8 – Uganda-based iungo capital has made two working capital investments totaling $700,000 in Kenya, backing Kwalito, an avocado and macadamia nut producer, and Cresta, a company that makes poles for rural electrification from sustainably-sourced eucalyptus.

The deals bring the fund’s total portfolio to 30, including six investments in Kenya, 23 in Uganda and one in Rwanda.

Iungo, which requires companies to improve their environmental, social and governance performance, is a rare source of mezzanine financing for small and medium-sized businesses in East Africa (see, “With ‘mezzanine capital,’ iungo seeks to fill a gap for East Africa’s small and growing family businesses”).

Portfolio exit

Iungo’s first exit is from Western Uganda Cotton Co., which sources and processes cotton from smallholder farmers. The $500,000, 12-month investment helped the company expand production and increase its organic sourcing.

Iungo’s two new portfolio additions are required to meet benchmarks for boosting employee wages and access to health insurance. The eucalyptus processor also has to ensure that seedlings are replanted at the same pace as tree harvesting.