**Expanded Funding Request: Taste of Unity Family Restaurant Chain**
**Total Requirement**: 28,000,000 ETB (≈$500,000 USD)
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### **1. Funding Structure**
| **Component** | **Amount (ETB)** | **Percentage** | **Terms** |
|-------------------------|------------------|----------------|-------------------------------------|
| **Equity Offering** | 19,600,000 | 70% | 40% ownership stake for investors. |
| **Debt Financing** | 8,400,000 | 30% | 12% annual interest, 5-year term. |
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### **2. Use of Funds**
| **Category** | **Amount (ETB)** | **Purpose** |
|--------------------------|------------------|----------------------------------------------|
| **Location Setup** | 12,000,000 | Lease deposits, renovation, décor for 3 locations (Bole, Kazanchis, CMC). |
| **Kitchen Equipment** | 6,000,000 | Commercial ovens, refrigeration, *teff* grinders, and utensils. |
| **Marketing & Launch** | 5,000,000 | Pre-opening campaigns, influencer partnerships, and grand opening events. |
| **Staff Training** | 2,000,000 | Hospitality certifications, culinary workshops, and tech onboarding. |
| **Contingency Reserve** | 3,000,000 | Buffer for currency fluctuations, supply delays, or permit issues. |
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### **3. Equity Offering Details**
**Investor Benefits**:
- **Ownership Stake**: 40% equity split among investors (70% of total funding).
- **Dividends**: 20% of net profits distributed annually (priority over retained earnings).
- **Governance**: Board seat for investors contributing >5M ETB.
- **Exit Options**:
- **Buyback**: Boaz Trading PLC repurchases shares at 1.5x original price after Year 3.
- **Acquisition**: Equity converts to shares in acquiring entity (e.g., international chain).
**Valuation Justification**:
- **Pre-Money Valuation**: 56M ETB (2x revenue multiple based on Year 1 projections).
- **Post-Money Valuation**: 84M ETB (56M + 28M investment).
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### **4. Debt Financing Details**
**Source**: Ethiopian Development Bank (EDB) under SME Growth Initiative.
**Terms**:
- **Interest Rate**: 12% fixed, repayable over 5 years.
- **Collateral**: Boaz Trading PLC’s existing assets (warehouses, vehicles).
- **Grace Period**: 12 months (interest-only payments Year 1).
**Repayment Schedule**:
| **Year** | **Principal (ETB)** | **Interest (ETB)** | **Total (ETB)** |
|----------|----------------------|--------------------|-----------------|
| 1 | 0 | 1,008,000 | 1,008,000 |
| 2 | 1,680,000 | 806,400 | 2,486,400 |
| 3 | 1,680,000 | 604,800 | 2,284,800 |
| 4 | 1,680,000 | 403,200 | 2,083,200 |
| 5 | 1,680,000 | 201,600 | 1,881,600 |
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### **5. ROI Assurance**
**Projected Returns**:
- **Year 1**: 3,500,000 ETB net profit (12.5% return on total investment).
- **Year 3**: 9,000,000 ETB net profit (32.1% return on total investment).
- **CAGR**: 26.4% (2024–2026).
**Profit-Sharing Mechanism**:
- 20% of net profits distributed to equity investors annually.
- Remaining profits reinvested into expansion (e.g., Year 2: 2nd location).
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### **6. Risk Mitigation**
**Currency Risk**:
- Hedge 50% of USD-denominated imports (olive oil, kitchen equipment) via forward contracts.
**Supply Chain Risks**:
- Multi-sourcing agreements with 3+ local farms for critical ingredients (e.g., *teff*, spices).
**Demand Risks**:
- **Flexible Menu**: Rotate dishes quarterly based on customer feedback.
- **Dynamic Pricing**: Off-peak discounts (20% weekdays) to maintain foot traffic.
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### **7. Investor Perks**
- **Exclusive Events**: Invitations to cultural nights, chef’s table dinners, and investor retreats.
- **Community Impact Reports**: Annual updates on job creation and sustainability metrics.
- **Franchise Rights**: Priority access to franchise opportunities post-Year 3.
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### **8. Comparative Advantage**
- **Ethiopian F&B Sector**: Avg. ROI 15–20% vs. Taste of Unity’s 26.4%.
- **Debt Leverage**: 30% debt minimizes equity dilution while maintaining 55% gross margins.
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**Why Invest?**
This structure balances **risk** (30% debt with fixed repayments) and **reward** (40% equity stake in a high-growth venture). With Ethiopia’s dining sector expanding at 12% CAGR and Taste of Unity’s first-mover advantage in fusion cuisine, investors gain exposure to a scalable, culturally rooted business poised to dominate Addis Ababa’s family dining scene.
*“Invest in unity, taste the returns.”* 🌍📊🍴