According to the Global Impact Investing Network, close to US$500mil that was deployed by private impact investors into Southeast Asia between 2007 to 2017 was in the form of debt, compared to US$408mil in the form of equity. Average debt quantum has been higher too, at US$5.8mil per deal, compared to US$3mil for an average equity investment. 

With the United Nations Conference on Trade & Development citing a multi-trillion dollar financing gap to meet the UN Sustainable Development Goals, can impact debt investors play a part in closing this gap? 

What impact frameworks can such investors use? 

For companies, what trade-offs are there when trying to raise debt? 

In this episode of the Investor Series, join me, Theodore Pang, Senior Investment Manager of SEEDS Capital, as I speak with Amy Wang, Head of Private Debt at Blue Earth Capital. Headquartered in Switzerland, Blue Earth Capital invests in debt, equity and funds, with the aim of providing access to basic needs, promoting inclusive growth and fighting climate change.

Stay tuned, as Amy shares her personal journey into impact debt, how Blue Earth Capital helps its portfolio companies navigate the trade-offs to debt, and hear an example of how impact debt can be used to create economic opportunities while reducing the incidence of forest fires in Indonesia.

 *Post recording, the speaker has clarified that the case study applies to Bukit Tigapuluh. We apologize for the mispronunciation.

The dairy industry is one of the largest food segments in the world valuing over US$700 billion. However, while it is one of the biggest, it is also one of the greatest polluters of our planet. The shear amount of resources it takes, as well as the amount of methane that cows produce is highly detrimental to our environment.

One company, TurtleTree Labs, is looking to revolutionise the industry with their ground breaking cell-based dairy products. 

How do they plan on bringing their new products to the world? What difficulties have they faced so far? How do we measure impact in this industry?

To answer these questions, I speak to Fengru Lin, CEO of TurtleTree Labs, for her insights.

Take a second to imagine what our cities could look like in the future…

Will our cities be thriving and sustainable places to live? Or will our environmental problems continue to escalate? Will our citizens freely and seamlessly commute and travel?  Or will our streets be chaotic and congested?

We have arrived at a crucial turning point for the Southeast Asian region. If growth is well managed, Southeast Asia can be a proper force for economic and social prosperity. But if it isn’t, our societies could seriously suffer, severely diminishing our quality of life and our environment.

Southeast Asia has a tremendous opportunity to sow the seeds for its future.

To talk more about how to build a smarter and more sustainable future, I speak with Sau

Sheong, CEO of SP (Singapore Power) Digital, for his insights.

Collectively, Indonesia, Thailand, the Philippines, Vietnam, Singapore and Malaysia have a GDP of close to $US3 trillion and that was growing by between 5 and 6 per cent a year until the COVID-19 pandemic led to movement restrictions and a dip in global trade.

But according to figures from Euromonitor and The World Bank, 50% the adult population in the SEA Region remain unbanked with no access to financial products, and a further 18%  are underbanked – lacking access to anything other than a bank account. 

With 70 percent of the population using smart phones there’s an opportunity for Fintech companies to step in and deliver digital financial services such as lending and wealth management to consumers who previously did not have access due to a lack of credit history.

So should we be optimistic about the concept of embedded finance? How does it help a businesses grow? Does financial inclusion and access to credit deliver impact to developing nations?

To answer these questions, I speak to Chris Sirisereepaph, Partner at Saison Capital for his insights.

Have you ever bought something first and paid for it later?

This form of financing - called 'Buy Now Pay Later'  is expected to grow rapidly, in fact a report by McKinsey estimated that this form of point-of-sale financing is forecast to generate $7 billion of annual US revenue come 2024.

FinAccel is an example of a company that is trying to bring such concepts to the world. Their flagship product - Kredivo “Buy now, Pay later”, enables e-commerce buyers to apply and qualify for instant credit and pay back over time, with the aim of increasing access to credit to countries like Indonesia.

What are the various benefits of the “Buy now, Pay later” solution to a developing market like Indonesia? What are some of the risks associated to this sort of financing?

To answer these questions and more, I speak to Abhijay Sethia,

Head of Strategy, FinAccel, for his expert insights.

According to a 2018 report from the Cambridge Institute of Family Enterprise, businesses dominate Southeast Asia and form a critical part of its economy. More than half of the region’s largest companies, and nearly all of its conglomerates both private and listed are family-controlled. These businesses account for a significant percentage of employment and economic development in the region.

Unfortunately, a large number of the family businesses in Southeast Asia have neglected to take the necessary steps to transform their businesses, putting themselves and the SEA region in jeopardy.

This is particularly predominant in traditional industries with established oligopolistic-like market structures that discourages innovation.

How then does an incumbent take the courage and vision to embrace innovation in traditional industries and be willing to step into new unfamiliar ways of doing business?

To answer this question, I speak to James Ong, Director, M&A and Business Development at IMC Pan Asia Alliance Group, a traditional shipping company that looks to Venture Capital as its next source of engine growth.

By 2050, it is estimated that our global population will reach close to 10 billion people! Of which, 70% will reside in urban areas, this translates to a whopping 60% more food required to feed our population.

And the coronavirus pandemic has only exacerbated this problem.

As Southeast Asia’s economies have contracted and slowed, serious concerns have emerged regarding food security in the region. Farming, a major employer in most Southeast Asian countries, has experienced a significant drop in rural labour due to mobility restrictions. 

This has caused a fall in both farm productivity and rural incomes.

Overall, millions are likely to fall into poverty after 2020, and this includes millions who were otherwise predicted to escape it. As a result, food consumption has fallen in many households, and a significant number of people have reported not being able to afford enough food.

It’s not a pretty picture, and if you are listening, you should be alarmed. But there is always hope, especially in situations like these.

To talk more about the future of food, I speak with Isabelle Decitre, founder and CEO of ID Capital, for her insights.

According to UNICEF, of the 83 million children in Indonesia, one third of children under 5 are malnourished, stunted, wasted or overweight, while two thirds are at risk of malnutrition and hidden hunger because of the poor quality of their diets.

In fact, it is even more crucial that action is taken immediately as it is predicted that Indonesia will likely have the highest rate of child deaths from Covid-19 in the world, with health officials blaming the unusually high death toll amongst children on underlying health conditions such as malnutrition.

One particular startup working towards combating malnutrition is Kindary...

They are producing a new type of cow’s milk that has garnered attention from both consumers and scientists alike.  Known as A2 Milk it is easier to digest than regular cow's milk and includes a range of other health benefits including improved immunity but what will be the impact of such a product? Especially in parts of Southeast Asia where as much as 90% of adults suffer some level of lactose intolerance.

How can innovative businesses use advancing technology to increase production, quality and profit, and how will that impact the lives of their customers, especially children?

To answer these questions, I speak to Pak Warren Choo head of Kindairy, for his insights.

Given the purpose-driven nature of social enterprises, do these organisations have to forego financial return for impact? How do we find out what impact has been created by these social enterprises? What does an impact-driven company even look like in the first place?

In this episode of the Investor Series, join me, Theodore Pang, Senior Investment Manager of SEEDS Capital, as I speak with Leon Toh, Director of Damson Capital. 

Based in Singapore, Damson Capital invests in early to growth stage social enterprises in Southeast Asia, with areas of focus in essential services, the environment and resilient communities.

So stay tuned, as Leon gives an example of a profit with purpose investment from his portfolio, why context matters when looking at returns, and his take on the difference between inputs, outputs and outcomes of impact investing.

What happens when you combine state of the art artificial intelligence and real estate management? You get Lauretta.io.

One report by McKinsey estimates that businesses that utilise customer behaviour data to generate behavioural insights can edge out their competition by up to 85% in sales growth, as well as 25% in gross margin. 

Not only does behavioural analytics benefit the businesses who use them, but consumers would also benefit from better data-based decisions.

So how does a company like Lauretta.io help facilitate such a partnership? How do they overcome potential drawbacks of using such technology? 

To answer these questions, I speak to Gavin Widjaja, CEO of Lauretta.io, for his expert insights.