Avocado Processing
🌾Agriculture
ID: 200
39,347.80USDC
Funded
98.37% of 40,000 USDC
- Funded date13.12.2025
- Loan period8 months
- Lending APR23.20 %
Repayment schedule
About
Kathy & Ray Horticultures Limited, founded in 2017 and based in Kenya, specializes in the production of unrefined cold-pressed avocado oil for export. Originally a pre-export avocado handling facility, the company shifted to oil production in 2018 and now operates an integrated processing plant located near Kenya’s avocado-growing regions. It supplies B2B clients in the food sector, including bulk traders, private-label manufacturers, and natural product distributors. The company controls the entire value chain from sourcing to packaging, with two lines capable of continuous output.
Ownership and leadership
The company is fully owned and directed by Nyongesa Bramwel Ndombi, whose operational expertise in oil processing, logistics, and plant management has driven the company’s growth and its ability to maintain consistent export relationships. His direct management ensures alignment between daily operations and strategic goals.
Financial Performance
General overview
Between 2021 and 2024, Kathy & Ray Horticultures Limited demonstrated consistent revenue growth and profitability, maintaining stable margins and avoiding external debt. Retained earnings rose significantly, creating a strong capital base for the company’s 2025–2026 expansion. This historical performance confirms the company’s financial discipline and operational viability.
Historical financial performance (2021–2024)
Year | Revenue (€) | Gross Profit (€) | Operating Profit (€) | CAPEX (€) | Net Profit (€) | Retained Earnings (€) |
2021 | 921,441.66 | 329,029.63 | 258,611.85 | 17,520.48 | 164,582.54 | 160,727.59 |
2022 | 873,361.29 | 311,501.58 | 241,125.51 | 19,374.80 | 150,993.32 | 276,720.91 |
2023 | 990,525.44 | 374,730.38 | 299,886.15 | 27,364.98 | 186,386.94 | 391,107.85 |
2024 | 1,113,401.06 | 493,208.03 | 413,050.16 | 18,724.24 | 271,147.58 | 662,255.43 |
Kathy & Ray Horticultures Limited maintained upward financial momentum, with gross profit increasing nearly 50% across the period. CAPEX remained moderate and self-financed. The company entered 2025 with a debt-free balance sheet and strong reserves.
Forecasted financial performance (2025–2026)
Metric | 2025 (€) | 2026 (€) |
Total Revenue | 1,131,127.10 | 2,384,717.59 |
- Unrefined Oil | 1,131,127.10 | 1,120,000.00 |
- Refined Oil | – | 1,258,717.59 |
Total Gross Profit | 503,133.13 | 1,025,386.30 |
- Unrefined Oil | 503,133.13 | 465,318.30 |
- Refined Oil | – | 554,068.00 |
Operating Profit | 422,855.26 | 873,349.25 |
Financial Cost | 71,125.00 | 867,875.00 |
- Interest Only | 67,125.00 | 111,875.00 |
- Principal Repayment | – | 750,000.00 |
Net Profit | 246,211.18 | 3,831.98 |
The 2025 forecast shows healthy profitability from ongoing operations. In 2026, revenue nearly doubles due to refined oil sales, but net profit is temporarily compressed by a lump-sum debt repayment. Operationally, the company remains cash-flow positive.
Financial obligations and repayment capacity
Loan-related costs are fully incorporated into projections. Interest is paid monthly; principal is repaid in full at the end of each tranche. The projected 2026 operating profit of €873,349.25 sufficiently covers the €867,875.00 in total financial costs.
Financial strengths
- Strong track record of profitability and internal reinvestment.
- Zero debt exposure prior to 2025.
- Loan structure aligned with operating cash flow.
- Forecasted profits exceed repayment obligations.
Financial risks
- Net profit in 2026 temporarily impacted by loan repayment.
- Growth assumptions depend on timely production ramp-up.
Conclusion
Kathy & Ray Horticultures Limited has built a stable financial base and maintained profitability through disciplined capital use. The short-term dip in 2026 profit is expected and linked to debt servicing. Long-term financial viability remains strong, with forecasted operations supporting full repayment and further scaling.
Highlights
Max target
40,000 USDC
Min target
20,000 USDC
Investors
50
Interest payments
8 months
Principal repayments
bullet
Total payments
monthly
Risk scoring
- CollateralCompany Assets
- Total risk scoreA
- Debt to equity0.61
- LTV48 %
- Credit history8/10
Details
Growth Plan of Kathy & Ray Horticultures Limited
Strategic direction
Kathy & Ray Horticultures Limited is expanding its operations through the construction of a refined avocado oil facility with a capacity of 8-10 tons of fresh avocado per day. Located near Nairobi, the factory will integrate the full refining process and enable the company to diversify beyond unrefined oil. Once operational, it is expected to produce 1,100-1,700 liters of refined oil daily.
Commercial foundation
The company has secured advance commercial interest covering 109,280 kg of refined avocado oil annually from clients including Gustav Heess GmbH & Co. KG, Aperoliva S.L., Chosen Foods LLC, and AMD Special Oil LLC. Letters of intent have also been signed with additional B2B buyers across Europe, the US, and the Middle East.
Economic rationale
The refinery is designed to enhance yield and reduce input costs:
- Raw avocado input: €0.38/kg
- Oil yield: 17%
- Processing loss: 2.5%
- Average selling price: €7.00/kg
These metrics support a high-margin, export-oriented product line.
Human capital expansion
The project includes hiring over 30 staff across production, logistics, administration, and quality control to support autonomous plant operations.
Investment and financing
The total project cost is €1,641,200, distributed as:
- Equipment and delivery: €932,000
- Land, construction, design, installation: €530,000
- Training and reserve: €179,200
Financing structure:
- €750,000 – external loan
- €650,000 – retained earnings
- €250,000 – founder capital contribution
A €182,000 down payment has already been made to the supplier, Myande Group Co., Ltd., and equipment production is underway.
Strengths and risks
Strengths
- Validated B2B demand for refined oil.
- Strong yield economics and cost structure.
- Fully defined funding plan and execution underway.
Risks
- Execution timing for installation and commissioning.
- FX and export logistics volatility.
- Temporary margin compression from debt servicing.
Conclusion
The growth initiative is backed by client commitments, proven economics, and an active implementation timeline. It will reposition Kathy & Ray Horticultures Limited as a dual-line producer with higher value capture and improved export competitiveness.
Description of the Loan
Loan structure
Kathy & Ray Horticultures Limited is requesting a €750,000 loan to support the procurement of processing equipment for its new avocado oil refinery. The equipment cost totals €932,000, of which €182,000 has already been paid to supplier Myande Group Co., Ltd. The loan will be disbursed in three equal tranches of €250,000.
Use of proceeds
Tranche | Amount (€) | Purpose |
1st | 250,000 | Payment for first batch of equipment |
2nd | 250,000 | Payment for second batch of equipment |
3rd | 250,000 | Final batch payment and installation coverage |
This phased structure ensures alignment with the supplier’s delivery schedule and avoids excess liquidity buildup.
Strategic rationale
The loan enables Kathy & Ray Horticultures Limited to operationalize its entry into refined avocado oil production – expanding its product portfolio, boosting margins, and meeting confirmed demand from international buyers. Without the loan, the company would face delayed execution and potential disruption to contractual obligations.
Risk considerations
Key risks: Loan disbursement delays, FX fluctuations, and revenue timing mismatches.
Mitigation: Secured equipment contracts, phased revenue projections, and sufficient retained earnings for buffer capacity.
Conclusion
The €750,000 loan is operationally justified and financially structured to support timely project execution. It complements internal equity and will allow the company to scale output while maintaining liquidity discipline.
Loan Collateral
To secure the €750,000 loan, Kathy & Ray Horticultures Limited offers a diversified collateral package including existing equipment, cash reserves, newly acquired fixed assets, and a personal vehicle pledged by the company’s founder. The total adjusted collateral value exceeds €1.56 million, representing more than 200% coverage of the requested loan amount.
Collateral components
- Existing production and logistics equipment: €422,871.29
- Frozen cash reserve: €100,000.00
- Founder’s pledged vehicle: Toyota Land Cruiser Prado (2018), valued at €49,120.28
- Land and industrial facility (after 30% discount): €336,000.00
- New processing equipment (after 30% discount): €652,400.00
Assessment
All pledged assets are unencumbered and possess resale value in the event of default. The inclusion of high-value industrial equipment and real estate, alongside liquid reserves and personal collateral, ensures tangible fallback value for the lender.
Conclusion
The company’s collateral strategy is comprehensive and risk-mitigating. The total pledged value provides more than full coverage of the loan principal, making the financial structure robust and secure for external financing.
Key facts
- Kathy & Ray Horticultures Limited was foundedAug 02, 2017
- Start of active work/productionAug 02, 2017
- Revenue in 2023€990,525.44
- Net Profit in 2023€186,386.94
- Revenue in 2024€1,113,401.06
- Net Profit in 2024€271,147.58
Borrower info
Kathy & Ray Horticultures Limited
Nairobi, Devsons Court, LR No. 209/248/8, Suite D-12, Argwings Kodhek Close, P. O. Box 12853, 00100 - G.P.O.
Kathy & Ray Horticultures Limited, founded in 2017 and based in Kenya, specializes in the production of unrefined cold-pressed avocado oil for export. Originally a pre-export avocado handling facility, the company shifted to oil production in 2018 and now operates an integrated processing plant located near Kenya’s avocado-growing regions. It supplies B2B clients in the food sector, including bulk traders, private-label manufacturers, and natural product distributors. The company controls the entire value chain from sourcing to packaging, with two lines capable of continuous output.
- Reg No.PVT-XYU8A5Z
Market description & size
Global market overview
The global vegetable oil market was valued at €257 billion in 2023 and is expected to exceed €340 billion by 2030. Specialty oils like avocado are gaining market share, especially among health-conscious consumers in developed regions. Cold-pressed and unrefined oils form a high-margin segment within this broader industry.
Avocado oil market
Valued at approximately €510 million in 2023, the global avocado oil market is projected to reach €810–875 million by 2030. Growth is driven by demand for clean-label oils used in premium food products, personal care, and wellness applications. The US and Europe lead global consumption, while Asia-Pacific markets show emerging demand. B2B buyers in food manufacturing, cosmetics, and nutraceuticals dominate end-use.
Consumption trends
Annual global consumption of avocado oil exceeded 95,000 metric tons in 2023, with the US accounting for around 35%. Industrial buyers prefer bulk formats, while retail remains niche. Around 70% of usage is food-related, followed by cosmetics and nutraceuticals.
Kenya’s role and the company’s positioning
Kenya is a growing avocado oil exporter, benefiting from year-round harvests, low labor costs, and geographic proximity to Europe and the Middle East. Kathy & Ray Horticultures Limited exports exclusively under a B2B model, serving distributors and processors in high-value markets.
Key export clients include:
- Germany: HephaistusY GmbH, Gustav Heess GmbH & Co. KG, SanaBio GmbH, All Organic Treasures GmbH, Henry Lamotte Oils GmbH, Delphi Organic GmbH
- Netherlands: Maya Gold Trading B.V., Koas Foods B.V., Eosta B.V.
- Italy: Aperoliva S.L.
- Poland: Natural Poland Sp. z o.o.
- USA: Chosen Foods LLC, AMD Special Oil LLC, Cibaria International Inc.
- Israel: S.M. Natural Ingredients Ltd.
- UAE: Alfa Trading House DMCC, Al Saniya Foodstuff Trading LLC
Conclusion
Kathy & Ray Horticultures Limited is well-positioned within a high-growth, premium product segment. Its B2B focus, strong client base, and geographic advantages offer clear expansion potential. However, continued competitiveness will depend on managing logistics challenges and infrastructure investment.