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IGNIA Fund I Invests US$3 Million in Pro-Organico, A Leading Mexican Organic Produce Grower and Exporter

Posted on: Wednesday, 1 July 2009, 10:35 CDT

MONTERREY, Mexico, July 1 /PRNewswire/ -- IGNIA Fund I, LP announced today that it has committed US$3 million to Pro-Organico S.A.P.I. de C.V. in the Company's first round of equity financing. Pro-Organico is a leading grower and exporter of a broad line of USDA-certified organic produce.

Pro-Organico links Mexican farmers to the rapidly-growing North American organic produce market by managing agricultural operations and coordinating logistics with distributors and retailers across the United States, Canada and Mexico. "By transforming small-scale farmers into organic producers and incorporating them into the global supply chain, Pro-Organico helps growers realize a significant increase in revenue per acre relative to conventional farming," said Alvaro Rodriguez Arregui, co-founder and Managing Partner of IGNIA. "Growth will also make it a platform for substantial job creation."

Pro-Organico was founded in 2003 by Chief Executive Officer Luis Elizondo. After serving more than 20 years as a Sales & Marketing executive, he identified an opportunity to transform the local rural economy and participate in a burgeoning market. Pro-Organico does business under the Nature's Way and Better World brands in the United States and Canada, and under the Dorita's Organic Farms brand in Mexico. In addition to serving export markets, Pro-Organico has been instrumental in expanding the organic produce consumption market in Mexico and is viewed as the country's leading retail supplier. In recognition of the Company's strict adherence to USDA organic standards, Pro-Organico was selected as the 2008 Grower of the Year by Oregon Tilth, a global leader in organic certification. Mr. Elizondo was named one of the Top 10 Entrepreneurs in Mexico in 2008 by Expansion, the leading Mexican business magazine.

"IGNIA shares my vision of changing the economic paradigm in rural Mexico by identifying creative ways to develop the country's comparative advantages," said Mr. Elizondo. "IGNIA's investment will allow Pro-Organico to rapidly increase scale, thereby improving the lives of thousands of small growers and laborers while fulfilling unmet demand for organic produce. The North American market has grown dramatically as consumers have learned about the benefits of consuming organic foods and Pro-Organico is uniquely positioned to provide year-round supply due to diverse microclimates in Mexico. Additionally, Pro-Organico's proximity to Southwest Texas offers North American distributors and retailers high-quality produce from a location that is hundreds of miles closer than California growers."

Michael Chu, co-founder and Managing Director of IGNIA, added, "We are enthusiastic about the potential for Pro-Organico to generate high financial returns. This will enable Pro-Organico to fulfill its growth potential and achieve the scale required to have a significant impact."

IGNIA Fund I, LP is a social venture capital fund that invests in high growth businesses in Mexico and throughout Latin America. By providing effective responses to the enormously underserved needs of the low income population, IGNIA empowers entrepreneurship and generates social impact at the Base of the Pyramid while creating attractive financial returns for its investors. IGNIA invests approximately US$2 - $10 million per company over the life of an investment.

Website: www.ignia.com.mx

Pro-Organico S.A.P.I. de C.V. is a leading grower and exporter of organic produce based in Monterrey, Mexico.

Website: www.pro-organico.com

SOURCE IGNIA Fund I, LP

Source: PR Newswire

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