January 16, 2024 – VIETNAM – Impact Investment Exchange (IIX), a trailblazer in the global impact investing movement, is excited to announce the successful mobilization of USD$500,000 for Detech Coffee, thanks to the partnership with Incofin, a leading global impact investment firm headquartered in Belgium.
Founded as a family business, Detech Coffee has thrived through the Impact Investment Readiness Vietnam (IIRV) program, a collaboration between IIX and Global Affairs Canada (GAC). This program, dedicated to empowering Social Impact Businesses, particularly women-focused businesses, equips participants with essential skills and knowledge, enhancing their readiness in raising capital and impact values.
The IIRV project, proudly supported by Global Affairs Canada, played a crucial role in the success of Detech Coffee’s fundraising efforts.
H.E. Shawn Steil, Ambassador of Canada to Vietnam shares his excitement, “Social impact businesses (SIBs) have shown a great ability to empower women, ethnic minorities and other marginalized groups through the goods and services they provide and the support they offer to local communities. Global Affairs Canada is pleased to partner with IIX in supporting the development of social impact businesses in Vietnam and improving their ability to attract impact investment. Our goal is to catalyze 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.”
In its commitment to global impact, IIX is strengthening its ecosystem through innovative programs like IIRV. The overarching goal of the IIRV project is to enhance the region’s economic landscape by engaging socially responsible investors. Over four years, the project aims to nurture the growth of the impact investing ecosystem, train 200 local Social Impact Businesses, and prepare them for effective capital-raising endeavors.
Prof. Durreen Shahnaz, CEO and Founder of IIX expresses her enthusiasm about IIX expanding its reach, stating, “IIX, a recognized global leader in impact investing, is 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 enterprise’s financial foundation and impact potential.
Ms. Ngoc Anh Dao, Ph.D., founder and chairwoman of Detech Coffee, shares her experience with the IIRV project, stating, “Working with Incofin and IIX is not just a lesson in fundraising but also an affirmation of the shared love for nature and a commitment to our cause. Their conviction in their work as our guides 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, a leading women-owned and operated enterprise in Northern Vietnam, is renowned for its sustainable and certified Arabica coffee production and collaboration with ethnic minorities. The US$500,000 fund via debt investment boosts its working capital and production volume.
Making significant strides in both gender equality and climate action, Detech Coffee produces tangible results in its ongoing efforts. The company proudly announced the launch of the Rainforest Alliance training program, positively impacting 500 smallholders in Son La, complementing their existing collaboration with 2000 smallholders. In 2023, the company embarked on key environmental initiatives, including afforestation and soil regeneration through agroforestry practices. Moreover, their commitment to sustainability extends to water conservation efforts initiated in 2019.
In addition, 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 Detech Coffee, addressing crucial aspects such as financial modeling, valuation updates, impact assessment verification, investor outreach, due diligence visits, strategic management consulting, and more. This commitment persists as Detech Coffee pursues its Series A fundraising, with IIX providing ongoing crucial support.
Mr. David Dewez, Managing Partner at Incofin Investment Management, emphasized the significance of this transaction, stating, “Not only are we delighted to partner with likeminded, impactful organisations such as Detech and IIX, this is the first agriculture enterprise investment in Asia for our Fairtrade Access Fund (FAF). FAF has been helping smallholder 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.”
IIX has achieved a notable milestone in Vietnam’s impact investing landscape, marking a pivotal moment in the growth of its global ecosystem. Recognizing the substantial potential within Vietnam, IIX takes pride in developing this potential into a valuable opportunity for investors and impact-driven enterprises, steering the region towards a more equitable and sustainable future.
Learn more about IIX’s initiatives in Vietnam, such as Impact Investment Readiness Vietnam.
For Media Inquiries, Please Contact:
Priya Balraju, Senior Vice President, Marketing and Communications
Impact Investment Exchange (IIX)
Impact Investment Exchange (IIX) is a pioneer in the global impact investing movement, dedicated to reshaping finance for sustainable development with a focus on gender equality and climate action. For over a decade, we’ve been building the sustainable investing market, from establishing the world’s largest crowdfunding platform for impact investing (Impact Partners™), operating award-winning enterprise technical assistance programs, creating innovative financial products such as the Women’s Livelihood Bond™ Series, and establishing an Impact Institute and Research & Advisory. Our work has spanned 60 countries, unlocked US$418 million of private-sector capital, positively impacted over 160 million direct and household lives, and avoided over 1.9 million metric tons of carbon. The base of IIX’s work is IIX Values™, an impact verification tech solution measuring investments’ social and environmental impact to the last mile, amplifying the voices of the underserved. In 2022, we launched the Orange Movement™ and within that created a new asset class, Orange Bond, to unlock $10 billion in capital markets by 2030, impacting 100 million women, girls, and gender minorities. Recognized with numerous accolades, including the Oslo Business for Peace and UN Global Climate Action Award, our efforts are propelled by our team’s ‘PREM’ values—passion, resilience, equity, and mavericks—bringing meaningful change to Global South communities and the 99%.
Learn more at www.iixglobal.com
About Detech Coffee:
Detech Coffee, a prominent women-owned and operated enterprise in Northern Vietnam and one of the top four Arabica producers in the region, has recently optimized its business model. By transferring its roasted coffee beans, instant coffee, and drip bag business to a sister company, Detech Coffee now intensifies its focus on agroforestry farming and green bean coffee production. This strategic shift not only diversifies its product range to include premium, specialty coffee, and macadamia but also strengthens the supply chain through decreased dependence on external sources.
The company continues to demonstrate that financial sustainability and positive social impact can go hand in hand. Through their partnership with the Rainforest Alliance and International Women’s Coffee Alliance, Detech Coffee actively works to enhance the livelihoods of marginalized groups, particularly focusing on sustainability training, capacity building, and empowering women and ethnic minorities in the coffee sector.
Learn more at https://detechcoffee.vn/en/
About Incofin Investment Management:
Incofin is a leading global impact investment firm headquartered in Belgium with EUR 1.4 billion Assets under Management. Incofin has a vintage of 22 years globally and primarily focuses on sectors of agri-food, financial services and water. It has made investments across 65 countries and has 100+ global team members based out of 7 global offices.
Learn more at https://incofin.com/