Shark Tank's Kahawa 1893 Coffee Aims To Fairly Compensate African Women

Many of us count on our morning cup of coffee to start the day, but coffee's widespread accessibility comes at a cost that isn't always apparent. As Daily Coffee News reports, coffee harvesting is a complicated industry that is often dependent on migrant workers who receive minimal pay, if anything at all. Many workers don't form contracts with the farm owners and can easily be taken advantage of.

One entrepreneur who understood these challenges and hopes to make a positive change is Kahawa 1893 founder Margaret Nyamumbo. She appeared on "Shark Tank" to try and broker a partnership with one of the Sharks. Nyamumbo comes from a family of Kenyan coffee farmers and knows the struggles of depending on the industry for income. Despite the challenges, she explained that Kenyans are deeply proud of the coffee their country produces. Kenyan coffee beans are often ranked among the top coffees in the world and are well regarded for their bright, balanced flavors. These flavors come courtesy of Kenya's unique double fermentation coffee processing.

Nyamumbo explained to the Sharks that to combat this issue, she created a business structure where female coffee farmers are paid directly. Customers can even use a QR code on the bag to tip these women further. The Sharks were blown away by this unique proposition, and a bidding war quickly took off. 

According to CNBC, Margaret Nyamumbo came to the Sharks seeking $350,000 in exchange for 5% equity in the company. Kahawa 1893 had been in operation since 2017 and was valued at $7 million despite only making $2 million in revenue the previous year. For shark Kevin O'Leary, this evaluation didn't add up, and he dropped his bid. For shark Mark Cuban, however, Kahawa 1893 was undervalued. "You're worth more," said Cuban.

Guest shark Emma Grede quickly jumped into the bidding with an offer for $350,000 at 12.5% equity. Grede is best known as the co-founder and CEO of fashion brand Good American. Bidding continued with some of the Sharks offering joint proposals. But ultimately Nyamumbo agreed to partner with Grede for a revised offer at 8% equity. Nyamumbo was thrilled to be bringing another Black woman entrepreneur into the company.

"This is just a dream come true for me, getting another Black woman supporting me and mentoring me," Nyamumbo said on the show. "All the other women farmers that we work with — they're going to be so excited." Grede also shared her excitement about the partnership in an Instagram comment, writing, "I'm so happy to be your partner Margaret, you've consistently impressed me!! This is just the beginning."