Investment Memo · Confidential · For Kyros

Hola Mija

Beef tallow tortilla chips. DTC + wholesale. Single SKU, single founder, LA factory.
Founder: Jesse Suarez
Founded: 2023
HQ: Los Angeles
Product: Tallow chips, 7oz
Site: holamijachips.com

Where the company sits today

2025 Revenue (Jan-Oct)
$72.8K
~$87K annualized · 4.7x YoY
Gross Margin (2025)
62.6%
$45.5K gross profit
Operating burn
~$900/mo
Near-breakeven, no payroll
Active doors
95
Faire + wholesale + local
Last 90 days
$24.1K
~$96K run-rate · accelerating
YTD 2026
$31.5K+
Inc. $7.4K AR booked
SKUs
1
Two pack sizes ($5.99 / $11.99)
Team
1
Founder + LA co-pack

Year-over-year financial picture

Metric2024 (Jul-Dec, 6mo)2025 (Jan-Oct, 10mo)YoY signal
Revenue$15,377$72,757~4.7x annualized growth
Gross Margin66.6%62.6%Slight compression as wholesale grew
Operating Expenses$6,070$50,949~8.4x — outpaced revenue
Net Income+$3,950-$9,087Profitable to slight loss
ChannelsSquarespace only+ Faire + Airgoods + ShopifyWholesale infrastructure built
The real read on the financials

Jesse ran a profitable business in 2024 by spending almost nothing. In 2025 he scaled revenue ~5x and expenses ~8x — Meals, Travel, and Office grew much faster than revenue. This isn't a broken business. It's a founder who can sell but hasn't installed cost discipline. That's exactly the gap operating partner + KPIs + monthly review fills. Add capital + discipline and the unit economics already work.

2025 Revenue by channel

ChannelTotal 2025% of revNote
Faire (wholesale)$21.3K29%Ramped from $0 in Jan to $3-4K/mo by year-end
Squarespace (DTC)$20.3K28%Steady DTC; migrating to Shopify
Other Sales$22.9K31%Direct wholesale, events, pop-ups. Needs detail in diligence.
Airgoods + Shopify + Shipping$8.3K12%Aggregator + DTC migration in progress

2025 Cost structure (10 months)

LineTotal% of revNote
COGS$27.2K37.4%Healthy for premium CPG
Office Expenses$12.8K17.6%Inc. $4.2K merchant fees, $5.9K supplies
Meals & Entertainment$11.5K15.8%High; needs breakout (buyer entertainment vs personal)
Advertising & Marketing$5.4K7.4%Modest; growth lever
General Business$4.8K6.6%Software, subscriptions
Contract Labor$4.0K5.5%Single contractor or events?
Vehicle Expenses$3.8K5.3%Founder-as-driver pattern; flag as personal
Travel$3.6K4.9%Buyer pitches?
Commissions & Fees$3.4K4.6%Faire + sales fees

Distribution snapshot

ChannelStatusNotes
DTC (Shopify)Liveholamijachips.com, 2,000+ verified customer reviews
Wholesale (Faire + direct)Live95 active doors across indie retail + local accounts
Bubble Goods, Foundation Foods, AirgoodsLiveNiche / clean-label aggregators
Thrive MarketOnboardingOnline clean-label aggregator; could 5x revenue at scale
Good Eggs, Jimbo's, Irvine Ranch, Nude Market, Elroy'sOnboardingSoCal premium / clean-label grocery; high-LTV demographic
Whole Foods, Sprouts, Erewhon, HEB, Bristol FarmsNot yetThe next-wave unlock
The signal in these numbers

Hola Mija ramped 4.7x in 2024 → 2025, ended 2025 near breakeven at ~$87K rev with 62.6% gross margin and an accelerating wholesale ramp. Faire went from $0 in January to $3-4K/mo by year-end, and 6 premium accounts (Thrive, Good Eggs, Jimbo's, Irvine Ranch, Nude, Elroy's) are onboarding right now. The brand is working at small scale, profitably. The bet is "can we accelerate retail wins from 95 doors to 250+ doors and ship a second SKU."

Product positioning

The opportunity

Thesis in one line

Hola Mija is a sub-scale brand sitting on a category tailwind, with the founder already in market. Capital + brand muscle + retail access can compound this into a real exit category in 24-36 months. The chip is commodity. The brand and SKU expansion are the moat.

Comparables

BrandOutcomeWhat we learn
Siete PepsiCo, ~$1.2B (2024) 10-yr build, multi-SKU Latino pantry. The dream exit. Won by going broad, not deep.
Masa Series A $14M (2024), $20M+ ARR yr 2 Tallow chip market leader. Premium single-SKU. Direct competitor.
Boulder Canyon (B&G Foods) Tallow line launched 2024 Incumbents are entering. Category going mass. Window is open but closing.
Late July (Campbell's) ~$100M+ rev acquisition Floor exit for a clean-label tortilla chip brand done well.

Why now

What it will take to get there

The four levers

LeverWhat's neededOwner
1. Premier retail distribution Whole Foods, Sprouts, Erewhon, Bristol Farms, HEB. Direct buyer relationships, regional first then national. 18-24 month grind. Kyros / Neww network
2. Capital to fund inventory + retail entry Slotting fees, demos, co-op marketing, working capital for retail PO cycles. $50K initial growth capital, plan reserves of $300K+ follow-on. Kyros
3. SKU expansion (chip is wedge, not destination) Chips → salsa → tortillas → queso → seasoning. 4-6 SKUs in 24-30 months. Brand-as-pantry, not single-product. This is the Siete playbook. Jesse + Kyros R&D
4. Brand build-out Identity refresh, content engine, retail-grade packaging, GTM playbook, ad creative. Neww's full creative stack deployed against the brand. Neww

Phased plan

PhaseWindowOutcome
Phase 1 — Close the pipeline 0-90 days Lock Thrive + Good Eggs + Jimbo's + Irvine Ranch + Nude + Elroy's onboarding. Diligence with Jesse closes. Cap table set. Brand audit + retail-grade packaging briefed. Target: 95 doors → 150 doors, $8K/mo → $20K/mo run-rate.
Phase 2 — Premier doors 3-12 months Whole Foods regional + Sprouts regional + Erewhon (LA-native, fastest given Hola Mija's home market). Brand refresh ships. Second SKU in R&D (salsa or tortilla). Target: $300-500K ARR.
Phase 3 — Multi-SKU + national 12-24 months Whole Foods national. Second SKU at retail. Third SKU in R&D. Target: $2-4M ARR, 500-1,000 doors.
Phase 4 — Exit-ready 24-36 months 4-6 SKUs at retail. Target: $8-15M ARR. Inbound from strategics (PepsiCo, Conagra, Campbell's, Mondelez). Decision: Series B or sale.

The deal on the table

Initial check
$120K
For 30% on signing
Follow-on tranche
$10-15K
For additional 10%, milestone-based
Total cash
$130-135K
For 40% fully diluted
Operating support
6 months
Neww services, no add'l cash

Implied valuation: $400K post-money at the $120K / 30% entry. Against $87K 2025 revenue, that's 4.6x trailing — fair for a near-breakeven CPG with 4.7x YoY growth, 62.6% gross margin, and active door pipeline. The follow-on tranche ($10-15K for +10%) is structured cheap to protect the 40% target if performance is on track but Jesse needs time. This is a 6-month operator bet with a clean exit checkpoint via the next raise, not a 24-36 month hold.

Why the structure works for Kyros

What Kyros / Neww brings

Risks & what we're watching

Existential risks

  • Trader Joe's tallow chip in 12-18mo window. They shipped tallow popcorn in 2024. TJ-tier price ($3.49/8oz vs Hola Mija $11.99/7oz) compresses premium positioning.
  • Siete shipping a tallow SKU (PepsiCo-owned). 18-30mo window. Existential at retail.
  • Single-SKU concentration. If chip stays the only product, ceiling is ~$5M brand. Multi-SKU is non-negotiable.
  • Founder unproven. First-gen Latino, no prior CPG exits. Operating support is part of why this works.

Manageable risks

  • Costco Kirkland private label — caps long-term upside but only triggers past $50M rev.
  • Whole Foods 365 — usually 18-24mo lag, caps shelf but doesn't kill brands.
  • DTC chip economics — shipping costs eat margin. Whole game is retail. We know this.
  • Frito-Lay defense — least likely. They'd acquire before they'd build.
Diligence flags from the P&L
The decision question for Jesse

"What's your 24-month SKU roadmap, and which of the 6 onboarding accounts are confirmed vs in conversation?"

If the answer is "focused on perfecting the chip, accounts are early-stage" → this is a $5M cap brand. Pass at any valuation.
If the answer is "chip is wedge, salsa is in R&D, Thrive launches in Q3, Whole Foods buyer is in conversation" → this is a $50-200M brand. $150K is the steal.

The 6-month plan

Goal: drive doors + DTC revenue hard for 180 days, then run a priced round at a meaningful markup. Every dollar Kyros spends in support compounds into the next valuation.

MonthDoors / RetailDTC / BrandOperations
1 Close Thrive contract. Confirm Good Eggs, Jimbo's, Irvine Ranch, Nude, Elroy's launch dates. Build buyer pipeline doc. Brand audit. Shopify migration kickoff. DTC analytics baseline. Diligence closes. Cap table set. Monthly KPI dashboard live. Cost discipline rules.
2 All 6 onboarding accounts launched. First 30 days of velocity data captured. Brand identity refresh briefed. Retail-grade packaging in design. Paid social testing $2-3K. First monthly board review. Founder salary set. P&L cleanup (close personal expense lines).
3 Whole Foods regional buyer outreach (NorCal + SoCal). Sprouts category buyer intro. Erewhon LA push. New packaging shipped. DTC site relaunch. Influencer seeding $5K. Run-rate target: $20-25K/mo. 150+ doors active.
4 Whole Foods regional pitch meetings. First 90 days of Thrive velocity for case study. Second SKU R&D — salsa or tortilla. Retail rough cost. Co-packer expansion conversations. Raise prep starts. Deck v1. Data room structure. Outbound list for CPG seed funds.
5 Whole Foods regional verbal commits. Sprouts plan. Pipeline doc updated for raise narrative. Second SKU prototype done. Brand merch + content engine live. Raise outreach begins. Term sheet target: $2-3M post on $300-500K ARR.
6 Whole Foods regional set dates. Run-rate target: $30-40K/mo. 200-250 doors active. Second SKU launch plan locked. DTC running at 15-20% of revenue with positive contribution margin. Raise close target. Kyros's 30% marks to $600K-$900K paper. Decision: lead vs follow at next round.

6-month KPI targets

MetricTodayMonth 6 targetStretch
Active doors95200-250300+
Monthly run-rate$8K/mo$30-40K/mo$50K/mo
Annualized rev$87K$360-480K$600K
SKUs12 (1 launched, 1 in market)2 launched
Gross margin62.6%60%+65%+
Operating burn~$900/moBreakevenProfitable
Whole Foods statusNoneRegional verbalRegional set date
The raise math at month 6

If Hola Mija hits $360-480K ARR with 200-250 doors, a Whole Foods regional verbal, and 2 SKUs, the next raise lands at $2-3M post-money based on current CPG seed comps. Kyros's 30% marks to $600K-$900K on a $120K cash basis — a 5-7x markup in 6 months. Add the +10% follow-on tranche if milestones hit and the markup compounds further.

Recommendation

Move forward with the $120K / 30% entry plus $10-15K milestone follow-on for 40% total, with 6 months of Neww operating support. Lock the term sheet. Get under the hood on:

  1. P&L breakouts — "Other Sales" $22.9K source breakdown; Meals & Entertainment buyer-vs-personal split
  2. Bank balance + runway — cash on hand, 6-month forward burn including any post-close founder salary
  3. Onboarding pipeline status — Thrive, Good Eggs, Jimbo's, Irvine Ranch, Nude, Elroy's. Confirmed contracts vs LOIs vs conversations.
  4. SKU roadmap — second SKU R&D status (salsa, tortilla, queso), launch timeline
  5. Co-packer agreement — LA factory terms, capacity ceiling, exclusivity
  6. Cap table — clean? prior rounds? convertible notes outstanding?

Once diligence is in, the term sheet drops with milestone definitions for the +10% tranche. Two-week target from first Jesse call.

What good looks like at month 6

Hola Mija raises a Series Seed at $2-3M post on $360-480K ARR, with 200-250 active doors, a Whole Foods regional verbal, 2 SKUs in market, and a brand refresh shipped. Kyros's 30% marks to $600K-$900K paper from a $120K cash basis — a 5-7x markup in 6 months. Decision then: lead the round at the markup, follow at pro-rata, or take partial liquidity.

What good looks like at month 36

Hola Mija ships 4-6 retail SKUs at premier doors nationally, at $8-15M ARR, with inbound interest from strategic CPG acquirers (PepsiCo, Conagra, Campbell's). Kyros's compounded position is worth $4-12M on a $130K cash basis. Latino-founded, Mexican-American pantry brand that built into a category leader before private label arrived. Siete-shaped outcome at a fraction of the build cost.