• BlueOrchard-managed InsuResilience Investment Fund Private Equity II (“IIF II”) has recently closed an investment into TechCoop, a Vietnam-based agri-tech company serving over 200,000 smallholder farmers.
  • The investment is part of a USD 28 million funding round, which also included participation from existing investors.
  • TechCoop addresses the key challenges faced by agri-SMEs and farmer cooperatives by offering trade payment, market access, and digital services. They have built a robust underwriting process, and a proprietary credit scoring model designed to assess the risk of lending to agricultural clients.
  • TechCoop is well-positioned to deliver crop insurance through its agri-tech platform, offering farmers vital protection against the adverse effects of climate change while effectively managing and reducing portfolio risk.

Established in 2022, TechCoop is an agri-fintech business delivering value across the entire agri ecosystem. It facilitates early trade payment for farmer cooperatives and agri-SMEs, and supports them in expanding their operations at affordable interest rates. The digitalisation services further help its clients enhance efficiency, traceability, and capture higher value in the export market. In just two years of operation, TechCoop onboarded more than 450 agri-SMEs and 3,000 cooperatives, which work with more than 200,000 farmers in Vietnam. TechCoop has established strong relationships with its clients and is deeply integrated into the local agricultural ecosystem.

Given its market positioning and direct access to farmer cooperatives, TechCoop is well placed to distribute crop insurance through its agri-tech platform to protect farmers against the adverse effects of climate change. Vietnam is one of the world’s most climate change vulnerable countries, ranked 127 out of 182 by the Notre Dame Global Adaptation Initiative (ND-GAIN. Vietnam is not only vulnerable to climate change but also has a low capacity to cope with extreme events (ranked 91 of 192 by the ND-GAIN Readiness Index)[1]. TechCoop is committed to enhancing climate resilience by providing crop insurance to a considerable segment of smallholder farmers by 2028.

“TechCoop is one of the few integrated tech platforms serving farmers and agri-SMEs in Vietnam, addressing the major constraint of access to finance across the agri value chain. The investment will enable the company to broaden its outreach and develop climate insurance capacity that will enhance the resilience of smallholder farmers in Vietnam.” Mahesh Joshi, Head of Private Equity Investments – Asia at BlueOrchard.

“We are excited to partner with BlueOrchard and share our vision for empowering small-scale farmers and agri-SMEs in Vietnam through crop insurance. By offering innovative crop insurance tailored to the unique needs of Vietnam’s farmers, we aim to promote long-term sustainability in the agriculture sector.” CEO of TechCoop, Hao Diep.

IIF II will appoint a representative to the Board of Directors of TechCoop and will work closely with TechCoop leadership to strengthen corporate governance, enhance their climate insurance offering, and assist TechCoop with evaluating expansion outside Vietnam.

IIF II, building upon the achievements of its predecessor, places a significant emphasis on leveraging technology to enhance the affordability and accessibility of climate insurance. The goal is to establish a robust ecosystem to facilitate access to climate insurance. This Fund, operating as a public-private partnership, stands out as a recognised example of effective climate change adaptation strategy.  Additionally, the Fund extends technical assistance and premium support to its partner companies. The objective is to provide growth capital, targeting market-rate returns, while private investors benefit from risk mitigation measures such as first-loss protection.

[1] WorldBank Vietnam Country Climate and Development Report, July 2022

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For further information, please contact: 
BlueOrchard
Clara Scholz, Communications & Marketing Manager
+41 43 8837332
clara.scholz@blueorchard.com  

 

About BlueOrchard Finance Ltd 

BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneer of impact investing, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 11 billion across more than 100 countries. As of December 2023, BlueOrchard supported over 300 million people in emerging and frontier markets with its investments. For additional information, please visit: www.blueorchard.com. 

 

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