- Loan Successfully Funded On 7 Mar 2024 and Fully Repaid
Scaling innovative wafer snacks to overcome malnutrition in young children across Cambodia
Danish Care Foods
- Phnom Penh, Cambodia
Menu
- 47,618 USD
Loan has been fully repaid
The increased demand for Danish Care Food’s innovative ready-to-use therapeutic food (RTUF) saw a significant increase in demand during the 1st quarter of 2024, with the demand for their RTUF orders doubling for the next 6-10 months as major international NGOs seek to combat malnutrition across Cambodia. This loan is to provide the necessary capital to boost the production and support increasing their purchasing volumes, and to ensure a smooth flow of distribution.
- 6 Lenders
Committed
- 6 months
Loan Period
- 10%
Interest Rate
- BACKGROUND
Loan summary
Danish Care Foods (DCF) specialises in the production of therapeutic and supplementary foods that helps to create a positive impact in nutrition for the consumer. Their fish-based ready-to-use-therapeutic food (RUTF) is utilised by the Royal Government of Cambodia and major INGOs to treat children with severe acute malnutrition.
This loan will help fulfil a major order, and ensure that Danish Care Foods is able to meet the needs whilst working with the local Government and other organisations to overcome the 34% wasting and 10% severe acute malnutrition among the children of Cambodia. The increase in production capacity also establishes the credentials and capability of DCF to other international organisations (UNICEF/WFP etc) and the neighbouring countries with similar malnutrition issues that they are ready to scale.
Borrower's mission
Danish Care Foods has been in the business of therapeutic/supplementary food for the past 5 years. They have been one of the players in support of the Cambodian Millennium Development Goals (CMDG) in the area of Nutrition and Food Security.
Initially, DCF served only 3-4 NGOs working in one or two provinces targeting about 2-3000 children annually. Today they have 8-9 NGOs that they work with targeting nearly 10k children annually. Especially within the last year, DCF have made significant progress in production capacity to the number of children that can be reached within a short time.
DCF are also currently researching a commercial fortified snack that they are hoping to release by the beginning of the 2nd quarter of this year. This fortified snack will be pushed to the rural communities – mainly to school children – to boost nutrition at an affordable cost at the same time fighting unhealthy junk food in the market.
As a social enterprise the above move to go commercial with a new product will help boost DCF’s cash flow as well as increase their market share.
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
For more than 8 years, Red Hat Impact has helped impact enterprises by raising capital and providing other kinds of business and strategy support. We have raised more than $3M from our network of impact investors, and loaned this capital to support 30 enterprises. We use a crowd-lending model to raise loan capital. As of May 2024, we maintain a 98% success rate on loan repayment. We establish close working relationships with all of the impact enterprises we raise debt capital for, and co-manage risks with them during the loan term.
- IMPACT
Impacts and how they are measured
The loan will help to supply the needed RUTF products for the projects to support 5000 children in three provinces. It will also enable Danish Care Foods to increase the company’s capability in preparation for the supply of larger orders in the future. Over 10% of young Cambodian children suffer from moderate and severe acute malnutrition. Nutrix, as an innovative therapeutic food, marks an important step towards reaching the Cambodian government’s goal to treat at least 25,000 children with severe acute malnutrition per year.
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