Krakakoa, which was established to improve the livelihoods of Indonesian cocoa farmers by buying directly from them, has raised funds from Singapore-based impact investors.
The bean-t0-bar chocolate maker has raised an undisclosed amount of funding from Impact Investment Exchange (IIX), LIC VC and SYSTEMIQ co-founder Jeremy Oppenheim, the firm said in a statement on Friday.
The chocolate maker said the funding will provide 1,000 smallholder farmers and 20 female factory workers with sustainable livelihoods, and avoid over 64,000 kg of chemicals through environmentally-friendly farming methods.
Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. The industry is still in its infancy, though it has been growing rapidly, with several significant investors getting involved and setting up their own funds in this sector.
IIX’s Impact Assessment estimates that for every dollar invested in Krakakoa, investors generate a net Social Return on Investment (SROI) of $2.51.
IIX is a Singapore-based venture capital firm that in 2018 partnered DBS Bank to list on Singapore Exchange the world’s first listed social bond – the $8-million Women’s Livelihood Bond. It is investing in Krakakoa through its IIX Growth Fund (IGF), which makes equity investments in impact enterprises that promote growth in underserved emerging and frontier markets in South and Southeast Asia, the firm said.
Robert Kraybill, managing director and CIO of IIX, said the fund is targeting to raise $25 million and has already made four investments into women-led or women-focused IEs, demonstrating how investors can play a catalytic role in women’s economic empowerment.
LIC VC is another Singapore-based impact investor comprising self-funded female investors who are interested in investment opportunities to help female-founded startups grow in Singapore and across Asia.