The Rise Fund, a global impact investment fund managed by TPG, has invested in Pearl Dairy, the largest dairy processor in Uganda.

Operating since 2013, Pearl Dairy’s vision is to create more consistent demand for Uganda’s smallholder farmers, while promoting more hygienic milk production techniques.

Since inception, the company has grown rapidly to help meet demand for quality, nutritious and affordable dairy products in Africa, selling LATO branded milk powder, long-life and flavoured milk, butter and ghee.

With more than 1,200 employees in Uganda and 1,800 across East Africa, Pearl Dairy sources raw milk from more than 10,000 smallholder farmers in Uganda and sells across 10 countries in Africa and Asia.

“In East Africa, three out of every four farmers have limited access to markets and credit. Pearl Dairy’s impressive footprint across these markets provides vital reach and resources for smallholder farmers, positioning the company to create positive impact that will scale as the business grows,” said Jide Olanrewaju, Partner at The Rise Fund.

As part of the transaction, Jide Olanrewaju and Daniel Norman will join the Pearl Dairy Board of Directors, as representatives of The Rise Fund.

Pearl Dairy’s processing and manufacturing facilities are helping to improve dairy infrastructure throughout the region.

Dairy products support income growth for smallholder farmers, as well as provide valuable nutrition for communities.

Pearl Dairy both sells vital dairy products to consumers and offers resources to contract farmers to educate them on cattle welfare and safer milk collection.

Amit Sagar, Pearl Dairy CEO, said: “We are excited to partner with Pearl as they continue to provide vital infrastructure and training to farmers alongside quality milk products for consumers across the region.” 

“Pearl Dairy was established with a dual vision of improving the lives of thousands of smallholder famers in the region and providing consumers with safe, nutritious, and affordable dairy products,” he said.

“We are excited to be partnering with The Rise Fund and are looking forward to utilizing their global expertise to help build an inclusive ecosystem that will have an even larger impact on the lives of millions of Africans.”

This is The Rise Fund’s second investment in the dairy sector, following their investment in India-based Dodla Dairy in 2017, which also focuses on elevating smallholder farmers.

As part of a broader food and agriculture platform, the funds are focused on expanding their agribusiness investments to further support economic and social sustainability through access to healthy, dietary staples and job creation, particularly in rural economies.

The Rise Fund also has an expanding footprint in Africa, with investments in Kenyan digital payments company Cellulant and Botswana-based ecotourism group Wilderness Safaris, among others.