Mekong Enterprise Fund IV (MEF IV) of Mekong Capital has recently signed a $5 million investment agreement with Husk, a coal and biofertilizer producer in Southeast Asia. This marks the fund’s first foray into agriculture after two years of not adding to the portfolio. Initially, Ellen Van, Head of the Investment Advisory Team at Mekong Capital, had doubts about investing in agriculture. However, recognizing Vietnam’s status as an agricultural country with 40% of its land dedicated to farming, the fund sees great opportunities for financial returns in the agricultural sector while also benefiting society.
Mekong Capital’s General Director, Mr. Chad Ovel, emphasized the potential for added value in Vietnam’s agricultural products, which currently are often exported as raw materials. Husk focuses on producing biochar, organic carbon-containing fertilizers, and crop protection products, with a business model that Mekong Capital believes can be easily replicated and scaled up. The company employs a word-of-mouth marketing strategy that has seen sales double annually since 2019. By focusing on improving profit margins and expanding into the Vietnamese market, Husk aims to capitalize on the country’s large agricultural sector and growing demand for organic products.
Husk plans to trade products for rice cultivation, coffee, and vegetables in various regions of Vietnam, seeing ample opportunities to contribute to the country’s agricultural development. Mekong Capital is known for its successful investments in various sectors and is now exploring opportunities in Vietnam’s agriculture sector. The fund aims to complete more investments this year.
