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Social Venture Fund | mercycorps.org/svf | @MCSocialVenture

Mercy Corps sees complex global challenges as an invitation: to pioneer paths out of poverty, to forge novel partnerships, to create solutions that break through entrenched challenges. But the traditional grant-based model of funding international development is limiting. It rarely promotes the flexibility and experimentation required to test new models that could sustainably deliver social benefit to millions of people in the developing world.

Social entrepreneurs worldwide are at the forefront of introducing new business models (and often technologies) with the potential to deliver sustainable impact at scale. These models are often executed through for-profit ventures and the entrepreneurs behind them face significant hurdles in growing their young enterprises including: access to capital, access to talent, and professionalizing in all facets of business operations. Mercy Corps believes that investing in these enterprises presents a compelling opportunity to achieve increased scale, innovation, sustainability, and partnerships in international development.

Mercy Corps’ Social Venture Fund is a seed-stage impact investment fund, capitalized through philanthropic sources, designed to help early-stage entrepreneurs overcome barriers to growth by providing capital and targeted post investment support.

Launched in 2015, the Social Venture Fund (SVF) has become an active seed-stage investor in East Africa, Southeast Asia, and Latin America. With an initial focus on Kenya, Indonesia and Colombia, SVF invests $50,000 - $250,000 in innovative startups operating in financial services, agriculture, last-mile distribution, and youth training and employment.

SVF’s unique value does not come from the investment of capital but instead from how we leverage Mercy Corps’ global platform to accelerate the growth of our investees. Key components of the Mercy Corps platform include:

More than 4,500 staff executing social and economic development programming across 40+ countries;

Technical experts in a variety of fields, including agriculture, financial services, ICT4D, and energy;

Strong networks and relationships with key government actors, private-sector entities, funders, and local communities; and

Advisory support from seasoned entrepreneurs and investors on the Social Ventures team and Advisory Board.

MERCY CORPS SOCIAL VENTURE FUND

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WELCOMEBacon ipsum dolor amet pancetta short loin tenderloin, venison andouille burgdoggen doner ham hock landjaeger turkey t-bone capicola. Cow corned beef boudin jowl leberkas biltong. Porchetta sirloin ham hock landjaeger tenderloin sausage shank ribeye t-bone turducken short ribs. Porchetta short ribs venison hamburger, burgdoggen boudin capicola t-bone.

Shoulder brisket short ribs pastrami ham hock pork belly jowl chicken tenderloin burgdoggen tongue salami short loin meatloaf. Chicken venison andouille sirloin, picanha fatback kevin shoulder porchetta prosciutto rump chuck. Pancetta turkey ground round biltong shank hamburger alcatra filet mignon beef jowl shoulder. Tail t-bone strip steak, ground round turducken chicken pork loin spare ribs bresaola short ribs tri-tip pastrami jowl ham hock. Beef meatloaf shank, strip steak cupim bresaola leberkas bacon ground round capicola ball tip. Short loin porchetta pork alcatra, pancetta venison ham hock cow. Boudin pork loin cupim, ground round filet mignon pastrami meatloaf short ribs ball tip sausage.

Alcatra beef ribs meatball, pancetta jerky shank kielbasa cow bresaola pig. Venison pork chop pancetta shoulder kevin. Chicken turkey landjaeger pancetta pork flank picanha, sausage shank turducken chuck bacon. Pork belly meatloaf drumstick ribeye frankfurter leberkas chuck ground round sirloin shoulder chicken salami tenderloin spare ribs hamburger. Ground round beef ribs short ribs, sausage tri-tip boudin t-bone rump sirloin shoulder leberkas. Kielbasa ham venison pork chop ham hock brisket jowl andouille beef.

Bacon ipsum dolor amet pancetta short loin tenderloin, venison andouille burgdoggen doner ham hock landjaeger turkey t-bone capicolaburgdoggen boudin capicola

our portfolio

*Number of investments: 9 Total Amount invested: $1,150,000 Median investment size: $100,000 Co-Investment Capital: $6,030,000 Follow-on Financing: $10,336,534 Companies with female founders: 3

SVF investments have: • directly impacted more than 600,000 customers, • generated over $4.2M in additional income for

smallholder farmers, agents and informal workers (4 companies reporting),

• provided $8.5M in loans to farmers, and • contributed to 13 of the 17 SDGs in direct and

meaningful ways.

Portfolio metrics are updated quarterly; although, not all metrics are reported quarterly by portfolio companies*Portfolio metrics are updated quarterly; although, not all metrics are reported quarterly by portfolio companies

*

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WELCOMEBacon ipsum dolor amet pancetta short loin tenderloin, venison andouille burgdoggen doner ham hock landjaeger turkey t-bone capicola. Cow corned beef boudin jowl leberkas biltong. Porchetta sirloin ham hock landjaeger tenderloin sausage shank ribeye t-bone turducken short ribs. Porchetta short ribs venison hamburger, burgdoggen boudin capicola t-bone.

Shoulder brisket short ribs pastrami ham hock pork belly jowl chicken tenderloin burgdoggen tongue salami short loin meatloaf. Chicken venison andouille sirloin, picanha fatback kevin shoulder porchetta prosciutto rump chuck. Pancetta turkey ground round biltong shank hamburger alcatra filet mignon beef jowl shoulder. Tail t-bone strip steak, ground round turducken chicken pork loin spare ribs bresaola short ribs tri-tip pastrami jowl ham hock. Beef meatloaf shank, strip steak cupim bresaola leberkas bacon ground round capicola ball tip. Short loin porchetta pork alcatra, pancetta venison ham hock cow. Boudin pork loin cupim, ground round filet mignon pastrami meatloaf short ribs ball tip sausage.

Alcatra beef ribs meatball, pancetta jerky shank kielbasa cow bresaola pig. Venison pork chop pancetta shoulder kevin. Chicken turkey landjaeger pancetta pork flank picanha, sausage shank turducken chuck bacon. Pork belly meatloaf drumstick ribeye frankfurter leberkas chuck ground round sirloin shoulder chicken salami tenderloin spare ribs hamburger. Ground round beef ribs short ribs, sausage tri-tip boudin t-bone rump sirloin shoulder leberkas. Kielbasa ham venison pork chop ham hock brisket jowl andouille beef.

Bacon ipsum dolor amet pancetta short loin tenderloin, venison andouille burgdoggen doner ham hock landjaeger turkey t-bone capicolaburgdoggen boudin capicola

Market NeedHundreds of thousands of people across rural Africa lack access to basic services like safe lighting, clean cooking technologies, and potable drinking water. Although products such as solar lights and clean cookstoves exist to mitigate the negative health and economic consequences people are experiencing, they are often unavailable or too expensive for low-income households to afford.

The NewLight Africa SolutionNewLight Africa (NLA) is a direct marketing and distribution company that employs sales agents to market and sell socially and environmentally beneficial products to last mile consumers in East Africa. Under the brand name Heya!, community-based sales agents nominated by women’s savings and loan groups sell a variety of products (e.g., solar lights) to their neighbors - generating entrepreneurial opportunities and access to beneficial products. Through NLA’s pay-as-you-go (PAYG) system, products become affordable for low-income individuals who cannot afford the entire cost of the product up front. Since customers know the community sales agents personally, they are less likely to default on their payments, they trust in the quality of the products, and are more likely to buy additional PAYG items in the future.

Business ModelNLA earns margin on products sold under the pay-as-you-go system. Agents in rural communities are trained and supported with marketing materials to sell entry-level solar products, leading eventually to more expensive Heya!-brand products such as cookstoves and water filtration systems.

Investment RationaleNLA’s model seeks to address one of Mercy Corps’ major areas of focus - last mile distribution. Mercy Corps Kenya has already paired with NLA on it’s energy access and last mile distribution work, and the Social Ventures team is able to provide technical and business support based on its experience with last-mile and clean energy ventures.

Route to Impact

ActivitiesTrain and support community agents, procure beneficial products for sale in communities where agents live and work

Outputs Community agents sell products, customers enter pay-as-you-go pipeline

Intermediate Outcomes

Increased entrepreneurial opportunities, increased access and affordability of socially beneficial products

OutcomesIncreased incomes for community agents, cost savings for customers through use of efficient products (e.g., solar lights vs. kerosene)

Ultimate Impacts Improved livelihoods for people in rural communities

MetricsBreadth: # products sold, # sales agents, # customers

Depth: $ income generated by sales agents, $ average income increase for sales agents

Reach: # female agents, # youth agents, % rural customers

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $600,000MC Share: $200,000Type: EquityDate: September 2015

NewLight AfricaWebsite: newlightafrica.comYear Founded: 2014Location: Nairobi, KenyaFounder: Steve Andrews

Market NeedApproximately 18 million rural Indonesian farmers live below the poverty line and lack access to the financing, information, and yield-improving technologies (fertilizers, quality seeds, irrigation systems) that would increase their incomes and help them climb out of poverty. Instead, to pay for daily supplies they are forced to access informal loans with interest rates of up to 100% and risk becoming more indebted and more insecure than before, unable to invest in their families or their properties.

The Vasham SolutionVasham provides a bundle of services to smallholder farmers growing staple crops (e.g., corn) designed to lower their production costs and increase their incomes. They educate farmers on the best farming techniques, provide access to higher quality seeds, offer low-interest loans, and line up buyers who will purchase harvests at a guaranteed premium. This closed-loop business model provides smallholder farms with resources and market linkages needed to achieve significantly better standards of living and improve their ability to invest in their children and their farms. The Vasham solution is also beneficial for buyers (e.g., feed mills) who benefit from secure and high-quality supply.

Business ModelVasham operates using a Sharia-compliant profit-sharing model where it collects a percentage of the total profits earned by the farmers. Vasham’s success is tied directly to its ability to increase smallholder farmers’ incomes, productivity and standard of living each year. It works exclusively with smallholder farmers (<2 hectares) who lack access to capital and who grow staple crops.

Investment RationaleVasham’s model seeks to address two of Mercy Corps’ focus areas - agriculture and financial inclusion. SVF’s investment reflects both the significant need in Indonesia and around the world for smallholder farmer support, and the potential of Vasham’s model to be scaled to meet that need in other countries where Mercy Corps is operating.

Route to Impact

ActivitiesProvide working capital loans and advisory services to farmers, provide direct connections to buyers

Outputs Farmers access needed inputs and apply newest low-cost farming techniques

Intermediate Outcomes Farmers increase yields

Outcomes Farmers receive higher prices and earn more profit for their harvests

Ultimate Impacts Increase quality of living for smallholder farmers

MetricsBreadth: # of farmers served

Depth: $ additional income generated, $ loans distributed

Reach: % of farmers served that are smallholder

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $2,500,000MC Share: $250,000Type: EquityDate: March 2016

VashamWebsite: vasham.co.idYear Founded: 2013Location: Jakarta, IndonesiaFounder: Irvan Kolonas

Market NeedAlmost 80% of Indonesians are “unbanked” and operate in a cash-only economy, which is insecure and limits their ability to build productive assets. Additionally, Indonesia has 278 million mobile phone subscribers, 99% of which are prepaid, representing a $7B market for phone credit, known locally as pulsa. However, an inefficient supply chain leads to thin margins for low-income vendors and consumers paying 20% above face value for small denominations.

The Wobe SolutionWobe is in the business of building digital products that solve problems at the base of the pyramid. Wobe is a mobile app that empowers anyone with a smartphone in Indonesia to become a microentrepreneur. Wobe’s app streamlines the pulsa supply chain creating income generating opportunities for community-based agents and cheaper, more readily available digital goods and services for consumers. By starting with the easy-to-understand transactions that are prevalent in rural areas, like, pulsa and utility payments, Wobe endeavors to build Indonesia’s most extensive last-mile agent network. This powerful network would not only provide excellent supplemental income to agents, but also allow Wobe to become a major low-cost distributor for financial services (e.g., remittances, insurance products, savings, and loans) for millions of people.

Business ModelWobe earns money on each transaction its agents complete. It has hundreds of thousands of urban and rural women it can target to be phone-credit agents, each of whom will bolster their incomes and provide a platform for marketing additional Wobe products and services in the future.

Investment RationaleWobe’s model addresses two of Mercy Corps’ key focus areas - financial inclusion and youth & female employment. There is strong alignment with Mercy Corps Indonesia’s programming on gender inclusion and financial literacy, particularly in rural Eastern Indonesia, a highly marginalized area with where Wobe’s model can be extended.

Route to Impact

Activities Recruit agents across Indonesia, add digital goods and services to platform

Outputs Agents download Wobe application


Agents sell phone credits and other digital financial services

Outcomes Increased income for agents, increased access to financial services

Ultimate Impacts

Improved livelihoods and financial inclusion for low-income populations

MetricsBreadth: # agents, # transactions

Depth: $ income per agent, # services offered through Wobe platform

Reach: % agents who are rural/women

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $800,000-$1,000,000MC Share: $100,000Type: Convertible NoteDate: March 2016

WobeWebsite: www.wobe.ioYear Founded: 2015Location: Jakarta, IndonesiaFounder: Adrianna Tan

Market NeedIn Kenya, 7.5 million smallholder farmers lack access to small loans to help them buy quality fertilizers, better seeds, improved livestock, and micro-irrigation, all of which would increase their farms’ yields and improve their incomes. This lack of financing for farmers (over $200 million per year in Kenya alone) is due, in part, to a lack of credible risk-assessment information (e.g., annual income, business expenses, yields, etc.) on smallholder borrowers available to lenders.

The FarmDrive SolutionFarmDrive is a technology company that generates real-time credit profiles for smallholder farmers that allow them to access mobile money loans from financial institutions and agricultural input providers. Using a proprietary platform, FarmDrive collects expense and revenue data from farmers via SMS and combines it with satellite imaging, remote sensing technology and alternative data points (e.g., soil analysis, weather forecasts, etc.) to create detailed yield estimates and assess credit risk. This report allows credit providers to make informed lending decisions and easily reach rural clients, which expands access to financing for smallholder farmers. As a result farmers have the opportunity to increase their yields, improve their incomes, and invest their additional revenue back into their families and communities.

Business ModelFarmDrive charges financial institutions a fee for each credit profile it creates and applies a percent margin on each loan extended. This is intended to offer cost savings for lending institutions as FarmDrive’s credit profiles have the potential to be more comprehensive and precise than existing underwriting tools thanks to the many data points it uses.

Investment RationaleFarmDrive’s model delivers solutions to two of Mercy Corps’ areas of focus - agriculture and financial services. Mercy Corps Kenya is assisting the startup in building relationships with financial institutions across Kenya, and learnings from FarmDrive can be applied to other financial inclusion startups the Social Venture Fund is engaged with globally.

Route to Impact

ActivitiesCollect farmer operational data via SMS, aggregate and analyze farmer and third-party data sets

Outputs Credit reports delivered to financial institutions

Intermediate Outcomes Access to loans for farm inputs

Outcomes Increased incomes for smallholder farmers

Ultimate Impacts Increased quality of living for smallholder farmers

MetricsBreadth: # farmers served, # loans disbursed; $ loans facilitated

Depth: $ income increase of farmers due to access to credit, # yield increase due to credit

Reach: % of farmers that are women and youth

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $100,000MC Share: $50,000Type: Convertible noteDate: June 2016

FarmDriveWebsite: farmdrive.co.keYear Founded: 2015Location: Nairobi, KenyaFounders: Rita Kimani and Peris Bosire

Market NeedThe majority (78%) of the labor force in Kenya operates in the informal sector with jobs and paychecks coming infrequently. The informal economy is inefficient, not transparent, and often associated with poverty, lower wages, and poor working conditions. At the same time, almost half (48%) of youth in Sub-Saharan Africa experience long-term unemployment. While even informal jobs are available, there is a mismatch between jobs and skills in the youth workforce.

The Lynk SolutionLynk is an online platform that connects skilled, reliable workers with households and businesses in need of their services. After creating a free profile and having their credentials verified, workers are alerted via SMS whenever job requests that require their skills (e.g., carpentry, plumbing, cooking, tailoring, etc.) are placed on Lynk’s website. Workers respond to alerts with a bid price, and employers then select among competing bids and review worker profiles before making a decision. As informal workers accrue more job experience and earn positive customer satisfaction ratings on their profiles, they can build their resumes and position themselves for more formal work, higher wages, and access to credit.

Business ModelLynk has a commissioned-based revenue model. It charges employers a fixed percentage of the job fee allowing workers to retain 100% of the amount they quoted. As its network of professionals grows, Lynk will offer feedback, training, apprenticeships and other value added services to its workers such as access to financial services.

Investment RationaleLynk’s model endeavors to make impact in a key Mercy Corps focus area - youth employment. The platform is a scalable solution and has a strong connection to Mercy Corps’ youth training programming in Kenya.

Route to Impact

ActivitiesCreate online job matching platform, connect workers with training, apprenticeships and financial services

Outputs Workers sign up on the platform, employers post jobs on the platform

Intermediate Outcomes Workers are placed in jobs via the platform

Outcomes Increased income for workers

Ultimate Impacts

Increased job security for informal workers, and improved livlihoods

MetricsBreadth: # of individuals that get paid for jobs through Lynk, # of people that complete training through Lynk

Depth: $ total income earned by individuals through Lynk jobs, $ average monthly income earned for individuals through Lynk

Reach: % of individuals paid for jobs through Lynk who are youth (18-34), % of individuals paid for jobs through Lynk who are female

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $400,000-$650,000MC Share: $100,000Type: Convertible noteDate: August 2016

Lynk Website: lynk.co.keYear Founded: 2015Location: Nairobi, KenyaFounders: Adam Grunewald and Johannes Degn

Market NeedThe vast majority (80%) of all retail purchases in Africa are made at small informal shops. But products at these stores are frequently out of stock, and when they’re available, it’s often at a high-price. Shop owners endure costly, time-consuming travel to central markets to purchase health and consumer packaged goods. This inefficient distribution system increases prices and limits communities’ access to potentially life-saving medicine, sanitation products, and nutritious food.

The SokoWatch SolutionSokoWatch is a last-mile distribution platform and agent network that enables small shop owners to stock beneficial consumer goods products from companies such as GlaxoSmithKlein, Unilever, and Procter & Gamble. Shop-owners text SokoWatch their orders and local, salaried SokoWatch agents fulfill the orders from central distribution hubs and deliver them to shops in less than 24 hours. Agents are provided with smartphones and training in financial literacy, distribution, and marketing - making them experienced distributors in informal areas. SokoWatch reduces expenses for shop-owners, provides full-time employment to its sales agents, and creates access to the health, sanitation, and consumer household products that low-income communities need to live healthy, productive lives. At the same time it allows consumer goods companies to have consistent and reliable distribution channels to reach into low-income, underserved communities.

Business ModelSokoWatch earns a percent margin on products purchased. It also allows store owners to purchase products on credit and repay them as they are sold.

Investment RationaleSokoWatch’s model seeks to addresses two of Mercy Corps’ focus areas - last-mile distribution and female and youth employment. The Social Veture Fund has connected SokoWatch with Mercy Corps Kenya’s Youth Empowered for Success program to serve as a pipeline for sales agents.

Route to Impact

Activities Sign up retailers, recruit agents, collect product orders

Outputs Fulfilled product orders

Intermediate Outcomes Increased income for shop owners, and agents

Outcomes Increased availability and access to top health and consumer goods products

Ultimate Impacts

Improved health, sanitation, and nutrition for customers

MetricsBreadth: # beneficial products distributed, # stores served, # active agents

Depth: $ shop owner income increase, $ agent income

Reach: #/% of agents that are (ages 18-34), #/% of agents that are female

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $700,000-$950,000MC Share: $100,000Type: Convertible noteDate: February 2017

SokoWatchWebsite: sokowatch.comYear Founded: 2013Location: Nairobi, KenyaFounders: Daniel Yu and Josh Middleman

Market NeedAlmost half (40%) of urban and peri-urban residents (and the overwhelming majority of low and middle class groups) in Colombia purchase healthy produce from one of over 450,000 neighborhood mom-and-pop shops. However, inefficiencies in the supply chain from farm to shop result in high prices for food staples such as potatoes and plantains, lower incomes for farmers and shop owners, and a large amount of spoilage and waste.

The Agruppa SolutionAgruppa is a last-mile distribution service that leverages mobile technology to streamline the produce supply chain for urban mom-and-pop shops and local farmers. Shop owners call or message Agruppa with their orders for produce and Agruppa fulfills orders at wholesale prices directly from local farmers while handling the logistics and doing just-in-time delivery. By aggregating supply and demand, reducing waste, and handling logistics in-house, Agruppa is able to reduce prices for low-income consumers by up to 10% while at the same time increasing margins for small and medium-sized farmers and low-income mom-and-pop shop owners.

Business ModelAgruppa earns margin on each delivery it makes, and is constantly seeking to expand the number of mom-and-pop shops and farmers they work with across low-income areas in Colombia. The organization is increasing it’s investment in technology platforms to further streamline order collection, purchasing, and distribution - lowering its operating costs.

Investment RationaleAgruppa’s model creates impact in two of Mercy Corps’ focus areas - last mile distribution and agriculture. It complements Mercy Corps’ current smallholder farming programs in Colombia, and the Social Venture Fund can provide technical assistance and learnings from similar last-mile investments in Kenya and Indonesia.

Route to Impact

Activities Collect produce orders from mom-and-pop shops, buy directly from local farmers, deliver to shops

Outputs Produce orders from shops, consistent supply from farmers


Low-cost, fresh produce is made available to end customers; mom-and-pop shops save on cost of produce and time

Outcomes Increased and more stable income for farmers, decreased expenses for shop owners

Ultimate Impacts

Improved livelihoods for farmers and mom-and-pop shop owners, increased accessibility to nutritious foods for customers

MetricsBreadth: # of mom and pop shop customers served, # of farmer suppliers

Depth: $ weekly savings to mom-and-pop shops, $ income increase for farmers

Reach: %/# of farm suppliers that are small and medium sized, %/# of mom-and-pop shops that are low income

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $405,000MC Share: $150,000Type: Convertible noteDate: March 2017

Agruppa Website: www.agruppa.coYear Founded: 2015Location: Bogota, ColombiaFounders: Carolina Medina and Verena Liedgens

mercycorps.org/svf

Market NeedAcross Colombia, 59% of citizens live in a state of land insecurity. Landless Colombians experience high levels of poverty, lack access to certain government services, are constantly at risk of experiencing land disputes; and potential eviction disincentivizes capital investment. Thanks to large-scale government efforts, land formalization pathways exist but they are time-consuming (18 months or more), expensive, and often corrupt.

The Suyo SolutionSuyo is a mobile technology company that formalizes property rights faster and cheaper for low-income families in Colombia. Suyo sales agents are sent to prospective customers’ homes to use an Android-based application to collect data and determine the type and cost of formalization services required (e.g., deed and registration, land titling, building permitting, succession documents, etc.). Then Suyo helps customers interested in purchasing complete services to apply for loans (often for the first time) through partner financial institutions. Using the data collected by sales agents and cross referencing it with government records, Suyo specialists prepare and complete formalization cases up to two to three times faster than existing services and at half the cost.

Business ModelSuyo first offers clients a low-cost property assessment to collect initial data and build trust in Suyo’s brand. Then it converts consultations into full formalization services purchases, which it earns a higher margin on - while ensuring services are still affordable.

Investment RationaleSuyo’s model seeks to address one of Mercy Corps’ major areas of focus - financial inclusion. Mercy Corps recognizes the immense potential land formalization has to eradicate poverty, and it is eager to apply the lessons from Suyo in other countries where it operates.

Route to Impact

Activities

Conduct property assessments via Android-based tool, prepare and deliver property formalization cases; create partnerships with financial institutions to finance formalization services

Outputs Property assessment, identification of formalization service, facilitation of loan


Improved understanding and trust in financial system; land formalization (title, estrata certificate, etc.) completed for household

OutcomesIncrease in property values, stability and security; subsequent access to credit for small business and home improvements

Ultimate Impacts Improved livelihoods for underserved communities

MetricsBreadth: # initial property assessments, # of individuals directly impacted by property assessment sales

Depth: # property formalization services delivered (by type of service)

Reach: % of clients that are low resource (estratos 1, 2, 3)

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: UndisclosedMC Share: $100,000Type: Convertible noteDate: April 2017

SuyoWebsite: www.suyo.coYear Founded: 2014Location: Medellin, ColombiaFounders: Matthew Alexander and Marcelo Viscarra

Market NeedOver 4.5 billion low-income consumers lack access to the skill development, education, needed products and services, and employment and entrepreneurial opportunities that can lift them out of poverty. But, 90% of these individuals have access to mobile phones. As millions of phones still lack access to the internet there is a large market opportunity for value-added services for basic mobile devices.

The Arifu SolutionArifu offers mobile learning tools that make it possible for the world’s least served people (youth and women at the base of the income pyramid (BOP), rural smallholder farmers, and microentrepreneurs) to access the information they need to improve their incomes and escape from poverty using any mobile phone. Arifu works to develop learning campaigns for multinational companies, international NGOs, and social enterprises operating in the agriculture, financial services, and consumer goods sectors. These campaigns serve as an affordable and effective way for global organizations to educate and train large networks of BOP employees (who make up the informal last-mile distribution networks for large companies in developing countries), beneficiaries, and businesses, while offering end users an employment-oriented educational marketplace.

Business ModelArifu operates a fee for service model. It provides its partners with custom content development services and distribution channels to disseminate content to active learners on its platform.

Investment RationaleArifu’s model addresses several of Mercy Corps focus areas - last-mile distribution, agriculture, financial inclusion, and youth and female training & employment. Since Arifu’s digital learning products can be delivered over any mobile phone and caters to the needs of large consumer goods and development organizations, the opportunity to scale is massive.

Route to Impact

Activities Custom content design, recruit learners to platform, send learning texts

Outputs Delivered learning messages

Intermediate Outcomes Increased access to important information

Outcomes Learners increase incomes via skills development and training

Ultimate Impacts

Improved livelihoods and pathways out of poverty

MetricsBreadth: # learners, # of learning messages delivered

Depth: # messages engaged with

Reach: # BOP learners, # smallholder farmers, # youth, # women

SDG Alignment


SOCIAL VENTURE FUNDInvestment TermsRound Size: $200,000-$350,000MC Share: $100,000Type: Convertible noteDate: June 2017

ArifuWebsite: www.arifu.comYear Founded: 2013Location: Nairobi, KenyaFounder: Craig Heintzman

45 SW Ankeny StreetPortland, Oregon 97204888.842.0842mercycorps.org

Mercy Corps Social Venture Fund

Mercy Corps believes that impact investing presents a compelling

opportunity to achieve increased scale, innovation,

sustainability, and partnerships in international development.

mercy corps social venture fund venture fund... · enterprises including: ... mercy corps’ social...

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