- Loan Successfully Funded On 20 Apr 2022 and Fully Repaid
WOPN Activewear Shirts (partial repaid plus new loan)
ADC Activewear
- Brisbane, Queensland, Australia
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- 12,000 AUD
Loan has been fully repaid
ADC is seeking this loan to raise the funds it needs to order at least 1500 and sell at least 1000 activewear shirts in Australia, over a 12 month period. The shirts are produced by community enterprises in Zimbabwe, giving disadvantaged young people and women an opportunity to overcome poverty, and fostering the reestablishment of community economy.
- 3 Lenders
Committed
- 30 months
Loan Period
- 8%
Interest Rate
- BACKGROUND
Loan summary
This loan is intended to provide growth and scale focused working capital for ADC. Having already made and sold 300 active-wear shirts with enthusiastic support from our customers, we are ready to make 5 repeat orders of 300 shirts over the next 12 months, with a target to sell 1000 of these during the 12 months, thereby continuously spurring both our revenue and impact.
Borrower's mission
ADC is largely established as both an innovator for aid and development solutions and more specifically as RYO Globternal`s key benefactor. To date, ADC has gone through all the start-up enterprise phases from the activewear shirts impact enterprise ideation to prototyping and MVP market testing. We have sold 300 shirts already, giving us a hands-on end to end process initiated from our Harare, Zimbabwe based manufacturing studio to Brisbane, Australia-based pop-up shopping mall store. We have also since set-up the ADC360 online store https://www.adc360.com.au/online-store/WOPN-Activewear-Shirts-p336587158 as an added and most importantly long-term focused digital channel for the activewear shirts and envisaged medium to long term future product diversification.
ADC envisages itself as a future high performing impact business in the Australian (and other western markets) activewear space with a significant to dominant market share. In Zimbabwe, ADC sees itself as potentially being well positioned to reignite the manufacturing industry in the currently comatose economy.
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
Zimbabwe has been experiencing very high poverty rates with economic development partners reporting 49% (7.9 million people, half of the population) as being in the “extreme poor” bracket (The World Bank, 2021) and a formal unemployment rate that was independently reported at 95% (Forbes, 2017). ADC realistically sees itself as potentially being well positioned to reignite the country’s manufacturing industry in the currently comatose economy. At this start-up stage, we have created potentially sustainable employment for 5-10 people and do have an ambitious target to have created more than 1000 textiles based jobs by end of year 3 after receiving this funding. Of the 1000, we intend to also use either and or both turnkey and franchising approaches to empower 100 of our high performing interested employees to start their own textiles businesses. Ultimately, over and above the demand driven employment creation opportunity presented by this loan, in years 2 and 3 after receiving the loan, ADC intends to donate 30% of its profits to RYO Globternal’s Wipe Out Poverty Now (WOPN) program and campaign. The WOPN also addresses unemployment related twin problems of HIV and AIDS as well as problematic drug use, prioritising the most affected groups of both women and youths. This loan will enable us to start our journey towards the scale of our ambitions. We will be able to make and sell at least 1000 activewear shirts over 12 months. generating $40,000.00 gross revenue and an over 60% ROI. At the end of the loan term, we will have a working capital balance of around $20,000 after repaying this loan, and stock on hand of up to 500 shirts. Selling faster than forecast will increase our working capital and enable us to increase our order size or rate.
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