FINCA Ventures, an affiliate of the US-based NGO FINCA International, recently invested an undisclosed sum to take a minority stake in CassVita, an agricultural technology (agtech) firm aiding Cameroonian farmers in cultivating cassava as a climate-resilient alternative to other crops. CassVita finances farmers’ inputs, purchases their crops and processes the cassava into flour. This approach curbs spoilage, reportedly boosting farmers’ income by up to 400 percent. Other investors in the firm include Investisseurs & Partenaires, a French firm focused on serving small and medium-sized enterprises (SMEs), and two US-based investors, the Harvard Innovation Launch Lab and Phoenix Investment Club.
Launched in 2018, FINCA Ventures is an arm of FINCA Impact Finance that provides “patient capital” and non-financial assistance to early-stage firms active in the energy, water, sanitation, education, health, agriculture and financial technology (fintech) sectors. The firm, which has 31 investments as of August 2023, generally places between USD 100,000 and USD 500,000 in each of its investees.
FINCA Impact Finance is a network of 20 microfinance institutions that offer savings, loans, and other services to 6 million people across 40 countries. FINCA Impact Finance is partially held by the US-based NGO FINCA International, which was launched in 1984 as the Foundation for International Community Assistance (FINCA).
By Pranav Agarwal, Research Associate
Sources and Additional Resources
ImpactAlpha article
https://impactalpha.com/finca-ventures-invests-in-farmer-livelihoods-financial-inclusion-and-education/
CassVita homepage
https://cassvita.com/
Pitchbook profile on CassVita
https://pitchbook.com/profiles/company/515751-58#funding
FINCA Ventures homepage
https://fincaventures.com/
FINCA Impact Finance homepage
https://www.fincaimpact.com/
FINCA International homepage
https://finca.org/
Harvard Innovation Launch Lab homepage
https://innovationlabs.harvard.edu/
Investisseurs & Partenaires homepage
https://www.ietp.com/
Phoenix Investment Club homepage
https://www.phoenixclub.vc/
Previous MicroCapital article on FINCA’s work in Jordan
https://www.microcapital.org/microcapital-brief-finca-microfinance-jordan-johud-partner-to-fund-community-businesses/
Previous MicroCapital article on FINCA’s work in Kyrgyzstan
https://www.microcapital.org/microcapital-brief-agents-for-impact-loans-1-5m-to-finca-bank-kyrgyzstan-for-microfinance/
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