Tomato Jos is an agro-processing company focused on the local production of high-quality tomato paste for the Nigerian market. In May 2020, Tomato Jos announced the successful closing of its US$4.2 million Series A funding round, in which Goodwell Investments, Alitheia IDF, Acumen, VestedWorld, and other investors participated.
CrossBoundary provided advisory support to this transaction through USAID’s INVEST program, funded by the USAID Southern and East Africa Regional Missions in support of the US Government’s Prosper Africa initiative. The advisory support helped Tomato Jos refine their investor materials and respond to critical investor questions as part of the due diligence process. This included a market sizing exercise to determine the formal and informal market size for tomato paste/mix in Nigeria, and a valuation analysis, which enabled investors to gain further insight into the size of the opportunity and the value that Tomato Jos had created up to this point.
Supporting over 70 smallholder farmers across three growing cycles, Tomato Jos has improved the average yield of farmers by over 340% from 5 to 22 metric tons per hectare, and increased their average income by 455%. The capital will enable the expansion of their existing model farm and tomato processing capacity. The company is working closely with smallholder farmers to make sustainable improvements across the entire tomato value chain. Tomato Jos’ ability to process the higher quality, locally grown tomatoes and reduce post-harvest waste will significantly improve the earning potential for Nigeria’s tomato farmers. It will put more than US$1M of direct income into the local economy each year while replacing imported tomato paste with local production.