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VunaPay Solutions Limited

Consultation on Potential Restructuring

Summary:

Assist a social enterprise providing instant payouts to smallholder farmers by providing a consultation on a possible restructuring.

Referred by:

Jurisdiction(s): U.S.
About the Organization: VunaPay provides instant payouts to smallholder farmers through agricultural cooperatives by offering an end-to-end produce and farm inputs management solution. This includes member management, inventory management, produce tracking, and payout disbursements to farmers.
Legal Entity Type: For-profit
SDG(s): Decent Work and Economic Growth, Industry Innovation and Infrastructure, Reduced Inequalities
Legal Issue(s):

VunaPay commenced operations in May 2023 in Kenya. In October 2023, in a move to secure financing, VunaPay sold 500 of its shares at market value to a Japanese entity (Japan Holdco), making the Japan Holdco the majority shareholder in VunaPay. Now, the VunaPay team is actively evaluating various shareholding structure options before their next round of fundraising, and they are considering establishing a new holding company in Delaware. One potential approach entails the U.S.-based entity acquiring the shares held by the Japan Holdco, thereby indirectly owning VunaPay. Alternatively, there is consideration for structuring a scenario where both VunaPay and the Japan Holdco become subsidiaries of the U.S. based company. The VunaPay team is now seeking a comprehensive consultation to discuss these options, and the various pros and cons of restructuring. They would appreciate any guidance on the general timelines and costs of restructuring. Ultimately, they would like to better understand what they are walking into before making these changes.