In 2022, the Lirio Fund made its first investment in Colombia, welcoming Pomario, a social enterprise that sells organic produce and provides jobs to rural communities
Puncte cheie:
Pomario sells organic produce sourced from smallholder farmers and grown in its greenhouses to Colombian families, retailers, and high-end restaurants. The enterprise is known for its pre-packed salads, sprouts, edible flowers, and micro vegetables.
During its time in the NESsT - IKEA Social Entrepreneurship Latin America accelerator program, Pomario attained remarkable growth and impact, which enabled it to secure additional funding from the NESsT Lirio Fund as well as external investors.
While Colombia’s fruit and vegetable market thrives, promising even greater growth in coming years, the potential of the sector is not reflected in the quality of life of its rural producers and workers – 86% of the country's rural workers operate without access to legal employment contracts and many live below the poverty line.
With support from mentors from NESsT and IKEA, Pomario implemented a series of strategic business decisions that enabled it to scale operations, amplify its impact, and secure additional investments.
Smallholder farmer tends to crops grown in Pomario’s greenhouses
In 2021, Pomario joined the NESsT - IKEA Social Entrepreneurship accelerator program, through which the enterprise received tailored mentoring in business development, marketing, and HR – plus access to flexible financing.
The founders of Pomario – a local family of third-generation food producers – had laid the foundation for a model that could transform living conditions for rural communities across the country.
By providing formal contracts that guarantee stable income 30% above minimum wage, Pomario found a way to protect rural workers against fluctuating seasonal demands and improve their living conditions. Pomario also works together with its suppliers to identify vegetables in high-demand and teaches them how to grow organic crops in larger quantities to increase their earning potential.
Worker waters crops at Pomario’s site
““When I first joined Pomario, I worked as a selector in the production plant. Over time, I was recognized for how well I did my job. I started to become curious and I learned a lot. Now, I am proud to be able to say that I am leading a team, and my dream is to become an accounting associate.””
Selectors in production plant and Natali, Accounting Associate, Pomario
During its time in the NESsT - IKEA Social Entrepreneurship Latin America accelerator program, Pomario attained remarkable growth and impact.
In addition to obtaining organic certification, the social enterprise achieved 53% increase in staff from marginalized communities and almost 200% growth in revenue.
With guidance from NESsT portfolio managers and IKEA co-workers during the acceleration program, Pomario:
Worker tends to Pomario’s crops
started the B Corp Certification process and achieved more than 120 points out of 200 in the initial impact assessment in the areas of governance, workers, community, and the environment. Pomario stood out due to its organic certification, sustainable agricultural practices, and solid impact measurement.
formed key partnerships for distribution and cooperation with Setas, among other companies, to streamline logistics in previously inaccessible markets. This strategic decision allowed Pomario to initiate its national expansion plans to the Atlantic Coast, Bogotá, Manizales, and Pereira.
developed and optimized human resource activities and, specifically, created an internal communication strategy to raise awareness among employees of the benefits of having a formal contract. Pomario also better defined its business development objectives to provide a sense of direction for the social enterprise, align teams, and guide decision making.
enhanced its B2B strategy to reach new clients. In 2022, Pomario directly supplied 25 restaurants in Bogotá. That year, the B2B restaurant sector accounted for 55% of Pomario’s sales.
Luis Miguel Botero, Co-founder and CEO of Pomario
In 2022, Pomario reached a milestone with sales surpassing USD $1.1 million for the first time, consolidating a clear growth trend and reaching breakeven.
As a result of its progress in the acceleration program, Pomario grew to a size that enabled it to secure an additional $330,000 in investments from NESsT’s impact fund in Latin America – the NESsT Lirio Fund – marking the Fund’s first investment in Colombia.
““Pomario entered the NESsT Lirio Fund thanks to the acceleration process through the program. It has been able to close gaps in production and processing that has allowed the company to expand into other areas of the country and open a new processing plant. We’ve seen how these achievements were made possible not only with capital, but also with continued business assistance – this is the greatest benefit that NESsT provides.” ”
A new phase for Pomario as part of the Lirio Fund
In this new chapter as part of the Lirio Fund, Pomario will access larger loans to further scale its business and harness the potential for growth identified in new markets. With funding provided on an as-needed basis for working capital needs, Pomario will be able to maintain financial growth in a sustainable manner.
In 2022, Pomario began the process of becoming certified as a B Corporation. As Pomario prepares to exit the accelerator, NESsT and IKEA mentoring will support the team with the upcoming auditing phase.
Additionally, during Pomario’s transition to the Lirio Fund, it will still have access to NESsT’s networks and business assistance, with continued support in the area of human resources as it grows its team. This will include assistance to implement procedures and best practices not readily available for workers in the agricultural sector such as career development, employment benefits, and employee well-being.
The Lirio Fund will support Pomario’s efforts to double its social impact and improve the livelihoods of around 105 people by the end of the loan term.
Diego Santana, NESsT Portfolio Manager and Luis Miguel Botero, Pomario CEO on a site visit to Pomario
““As Pomario prepares to scale its sustainable business model throughout Colombia, the capital and support offered by NESsT will help the company accelerate the social enterprise’s growth initiatives to ensure its long-term success and impact.””
To date, with newly raised capital from NESsT Lirio Fund and other external investors, Pomario has been able to:
upgrade its equipment, including the processing plant, irrigation systems, and cold chamber. These improvements enabled Pomario to optimize production, doubling the shelf life of certain products and leading to higher customer satisfaction.
boost marketing efforts through digital platforms and, as a result, double the conversion rate in its marketplace from. Pomario’s online monthly sales in the B2C channel saw remarkable growth, constituting almost 10% of the company’s monthly sales.
Pomario’s farms and greenhouses on cover photo.