ReelFruit closes $3 million Series A funding to increase its dried fruit production
ReelFruit, a premium dried fruit company recognized for its high-quality healthy snacks, has closed a $3 million Series A investment.
The round was led by Alitheia IDF with a $2 million investment. Other participants in the round include Samata Capital and Flying Doctor Healthcare Investment Company. New Practice served as advisors to ReelFruit on the deal.
ReelFruit will use the funds to expand its dried fruit production, develop new products, and grow exports by 10 times to 15 MT in the first year.
As part of its expansion plans, ReelFruit will acquire a new factory in Ogun State to increase its monthly dried fruit production from 6 MT to 30 MT. The factory will hire over 200 people in its first year. With its greater supply of dried fruit, ReelFruit will continue to innovate new products for the local and international markets.
Commenting on the funding round, Affiong Williams, ReelFruit’s CEO/Founder said the investment will help take ReelFruit to the next level.
“We can meet increased demand for our products and tackle one of our biggest challenges – raw material supply. We’re thrilled that this will unleash a greater impact on our value chain by increasing farmer incomes and creating up to 300 decent jobs for Nigerians.”
To meet strong demand for its dried fruit snacks, ReelFruit will diversify its local and international sales channels. The company will launch an e-commerce channel for direct US sales by 4Q21.
ReelFruit will also unlock more B2B opportunities, including white-labelling and co-packing to support the national drive toward import substitution. Local buyers will be able to buy dried fruit locally, thereby reducing dependence on imports. Reelfruit is already on track to double last year’s revenues by November 2021.
On why they invested in the company, Tokunboh Ishmael, Alitheia IDF co-founder explained that ReelFruit’s business model will create jobs and impact communities positively.
“Alitheia IDF is proud to support ReelFruit’s ongoing efforts to boost food production in Nigeria and positively impact communities through deliberate partnerships with local farmers, distributors, and retailers. The investment will strengthen the company to unlock further growth, upskill farmers and improve economic outcomes for thousands of women who play a significant role in the production of ReelFruit’s products.”
As part of its efforts to secure high quality raw materials, ReelFruit plans to deepen its existing work with Nigerian fruit farmers.
The company will form an agro-extension services program for 250 registered mango and pineapple producers. The program will boost fruit yields and help support a steady supply of high-quality raw material for the factory.