Mekong Enterprise Fund IV invest $5 million in HUSK

Mekong Enterprise Fund IV (MEF IV)  announced to have signed agreements to invest $5 million in HUSK, a biochar and biofertilizer company committed to regenerative agriculture practices in Southeast Asia.

Founded in 2017, HUSK produces biochar, carbon-based fertilizers and crop protection products designed to address the challenges faced by farmers, including the yield gap, pests, diseases and poor soil and nutrient management, all exacerbated by climate change.

This investment exemplifies MEF IV's dedication to generating both financial returns and meaningful social and environmental impact across the region.

Ms. Heloise Buckland, CEO and co-founder at HUSK, states, the announcement is both transformative to the continuing rapid development of HUSK as a leading producer of organic fertilisers – and also to the uptake of biochar as a key foundation to the acceleration of regenerative agricultural practices across South East Asia.

"Our mission is to accelerate the transition to regenerative agriculture and to achieve this we have developed a unique set of technologies and products that build soil, sink carbon and build climate resilience," she added. "Farmers choose our products as they are better value for money than conventional inputs and support long term soil health, crop protection and improved water and nutrient efficiency. The commitment of Mekong Capital to support our vision could not have come at a more critical time - where the need for viable, scalable, and impactful solutions to runaway soil degradation is at its most urgent."

Ms. Ellen Van, Principal at Mekong Capital and Deal Leader for the investment in HUSK, remarked Mekong Capital believes in investing in companies that not only deliver financial returns but also create meaningful social and environmental impact. "We stand behind HUSK's mission, and we look forward to supporting its growth in the years to come and showcasing the positive correlation between impact and returns," she said.

In Vietnam, HUSK strategically markets its products in the midland plains for vegetables and coffee, and the Mekong Delta for rice cultivation. The company aims to help meet the increasing demand for organic fertilizers in Vietnam in line with the Ministry of Agriculture and Rural Development’s goals to raise the proportion of organic products registered to 25% by 2025.

HUSK also has ambitious plans to put Vietnam in a leadership position in decarbonising key value chains such as coffee and rice, by building soil, sinking carbon and reducing the use of synthetic fertilizers.

Mekong Capital has the most extensive private equity track record in Vietnam. Some of their well-known investments are Mobile World, Phu Nhuan Jewelry (PNJ), ICP, Golden Gate, Vietnam Australia International School (VAS), Masan Consumer, Traphaco, and F88.

Mekong Capital’s fifth fund, MEF IV, is a private equity fund with a fund size of $246 million that will continue Mekong Capital’s strategy of investing in growth-equity investments in Vietnamese companies and exclusively in proven consumer-driven sectors that benefit from the growth in Vietnamese consumer demand and the adoption of modern business practices.

The Fund will focus particularly on retail, education, restaurants, consumer services, FMCG, and health care including Entobel, Marou, Mutosi, HSV Group, LiveSpo, Rever, Gene Solutions and F88.