In recent years, Mekong Enterprise Fund IV (MEF IV) of Mekong Capital has diversified its portfolio by venturing into the agricultural sector. The fund has recognized the huge profit potential in this industry and has recently signed a $5 million investment agreement with Husk, a coal and biofertilizer producer in Southeast Asia.
At first, Ellen Van, Head of the Investment Advisory Team at Mekong Capital, had reservations about investing in agriculture due to the uncertainty and volatility of the market. However, after recognizing Vietnam’s agricultural prominence with 40% of land devoted to farming and over 70% of the population involved in agriculture, she saw financial and societal impact opportunities in this sector.
Mekong Capital believes that Vietnamese agricultural products are missing out on added value by being exported as raw materials only. Therefore, the fund aims to transform Husk into a model agricultural investment with both social impact and financial returns by supporting its expansion and product development into Vietnam.
Husk specializes in producing biochar and organic carbon-containing fertilizers using rice husks as their primary resource. Their operational model focuses on word-of-mouth marketing through sample farms near distributors, leading to exponential sales growth since 2019. With plans to trade in rice cultivation, coffee, and vegetables, Husk aims to tap into Vietnam’s growing market for organic products as the Ministry of Agriculture and Rural Development targets a 25% increase in organic product registration by 2025.
Mekong Capital’s commitment to Husk signifies its confidence in the growth potential of the agricultural sector in Vietnam. As one of the most successful investors in Vietnam’s startup ecosystem, Mekong Capital continues to explore further opportunities while currently investing in companies like Pharmacity, F88, Vua Nem, Pizza 4P’s.
