Feronia

The story of Feronia Inc. isn't one of a typical startup, but of inheriting a century-old operation. Its roots trace back to 1911, when Lever Brothers, a precursor to Unilever, established vast palm oil plantations in the Democratic Republic of Congo (DRC). These plantations, known as Plantations et Huileries du Congo (PHC), operated for decades before falling into disrepair due to conflict and under-investment. In 2009, a Canadian-headquartered agribusiness called Feronia Inc. acquired PHC from Unilever, aiming to rehabilitate the struggling palm oil business. The plan was to modernize the plantations, which produced crude palm oil and palm kernel oil exclusively for the local DRC market. Key figures in Feronia's journey included Executive Chairman Ravi Sood and CEO Xavier de Carniere. To fund the ambitious turnaround, Feronia secured significant capital. In 2013, it raised $25 million, led by the UK Government's Development Finance Institution, CDC Group, which became a major shareholder. Further investment followed from other development finance institutions, totaling over $100 million over the years. Despite the massive influx of capital, the venture struggled. By 2020, Feronia Inc. faced bankruptcy and was delisted from the Toronto Venture Exchange. The company entered into a restructuring agreement, and its assets, primarily its interest in PHC, were acquired by Straight KKM 2 Ltd., a consortium of investors. Following the sale, Feronia Inc. was officially declared bankrupt.