IIX FACILITATES $500,000 FUNDING FOR DETECH COFFEE
Impact Investment Exchange (IIX), a trailblazer in the global impact investing movement, announced the successful mobilisation of $500,000 for Detech Coffee on January 15, thanks to its partnership with Incofin, a major global impact investment firm headquartered in Belgium.
Detech Coffee is a successful women-owned and operated enterprise in northern Vietnam and is renowned for its sustainable and certified Arabica coffee production and collaboration with ethnic minorities. The $500,000 fund via debt investment boosts its working capital and production volume.
Founded as a family business, the company has thrived through the Impact Investment Readiness Vietnam (IIRV) initiative, a collaboration between IIX and Global Affairs Canada (GAC).
This scheme is dedicated to empowering Social Impact Businesses (SIBs), organisations that prioritise serving local or global community needs, particularly women-focused businesses, and equips participants with essential skills and knowledge to enhance their readiness in raising capital and make a valuable impact.
The IIRV project, with support from GAC, has played a crucial role in the success of Detech Coffee’s fundraising efforts. “SIBs have shown great ability to empower women, ethnic minorities, and other marginalised groups through the goods and services they provide and the support they offer to local communities,” said Shawn Steil, Ambassador of Canada to Vietnam.
“GAC is pleased to partner with IIX in supporting the development of social impact businesses in Vietnam and improving their ability to pull in impact investment. Our goal is to catalyse positive change, foster sustainable growth, and shape a future where social impact businesses thrive, transforming poor communities and building a more inclusive, resilient economy together,” Steil added
In its commitment to global impact, IIX is strengthening its ecosystem through innovative programmes like IIRV, whose overarching goal is to enhance the region’s economic landscape by engaging socially responsible investors.
Over the next four years, the project aims to nurture growth in the impact investing ecosystem by offering training to 200 local SIBs to prepare them for effective capital-raising endeavours.
Durreen Shahnaz, CEO and founder of IIX, said, “We are proud to extend our transformative expertise to the vibrant landscape of Vietnam. As we continue to pioneer impact investing worldwide, our commitment to fostering sustainable development and driving social change in Vietnam and the world over remains unwavering.”
The collaboration between IIX and Detech Coffee has been marked by dedicated efforts to enhance the coffee producer’s financial foundation and impact potential.
Ngoc Anh Dao, founder and chairwoman of Detech Coffee, said, “Working with Incofin and IIX is a lesson in fundraising and affirmation of the shared love for nature and a commitment to our cause. Their conviction in guiding us through the intricacies of impact investing is a source of great inspiration. It’s a genuine boost to feel supported and understood. I’m grateful for the energy they bring to the table, which spurs me to push boundaries and continue making a difference.”
Detech Coffee has made significant strides in both gender equality and climate action and has produced tangible results in its ongoing efforts. In April 2023, the company launched the Rainforest Alliance training scheme, which had a positive impact on 500 small-hold farmers in Son La, complementing their existing collaboration with 2,000 conventional farmers in the region.
The company embarked on several key environmental initiatives last year, including afforestation and soil regeneration through agroforestry practices. Moreover, its commitment to sustainability extends to water conservation efforts initiated in 2019.
With the support of IIX, the company is actively seeking impact investors to expand its scalable coffee agroforestry, invest in infrastructure, cultivate plantlets, and embrace digital innovation.
These initiatives aim to ensure sustainable growth for Detech Coffee, generate additional employment opportunities within local communities, and contribute to climate change mitigation.
IIX has taken a comprehensive approach to support the coffee grower, addressing crucial aspects such as financial modelling, valuation updates, impact assessment verification, investor outreach, due diligence visits, strategic management consulting, and more.
This commitment will persist as Detech Coffee pursues its Series A fundraising, with IIX providing crucial support.
David Dewez, managing partner at Incofin Investment Management, said, “Not only are we are delighted to partner with like-minded, impactful organisations such as Detech and IIX, this is the first agriculture enterprise investment in Asia for our Fairtrade Access Fund. FAF has been helping small-hold farmers unlock access to capital in Latin America and Africa since 2012, and we are excited about the role the fund can take in supporting smallholder farmers in Asia going forward.”
Learn more about IIX’s initiatives in Vietnam: https://iixglobal.com/impact-investment-readiness-vietnam-viet-page/
