Bali Retail Store Expansion
Linbro Gardens
- Bali, Indonesia
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Indosole, an Indonesian impact enterprise that has been transforming discarded tires into sustainable footwear for 15 years, needs a loan to open two new retail stores in Bali. Store sales will amplify their environmental impact (further reducing tire & other waste), support local employment, & increase consumer awareness of eco-conscious products. The expansion will strengthen their profitability and enable further investment into innovation and positively contributing to the circular economy.
- 0 Lenders
Committed
- 24 months
Loan Period
- 12%
Interest Rate
- BACKGROUND
Loan summary
Indosole seeks this loan to support its strategic expansion by opening two additional retail stores in Bali.
Since inception, Indosole has focused primarily on physical retail stores (sixth shop opened in Q1 2025), leveraging direct customer interactions to promote sustainable consumer behavior by transforming discarded tires into durable, stylish footwear.
Their existing retail locations have demonstrated significant success, with each new store achieving an average 20% sales growth year-on-year and fostering repeat online purchases from tourists upon returning home.
This positive trend encourages their strategy to expand their retail presence, directly enhancing their environmental impact, increasing market awareness, and solidifying community engagement with sustainable practices.
Borrower's mission
Since its inception, Indosole has actively pursued its impact mission by transforming over 100,000 discarded tires into sustainable, ethically-produced footwear, significantly reducing waste. Over 4 tonnes of tires were recycled into shoes in 2024, along with 8 tonnes of recycled sandal foam and post production waste, and 4 tonnes of cardboard.
Their approach includes local community engagement and fair employment practices, with 23 direct staff and another 25 employed in the factory where the shoes are made.
Looking ahead, Indosole aims to amplify its positive environmental and social impacts by expanding globally, innovating sustainable products, and becoming a leading voice in the circular economy, all while achieving strong, sustainable commercial growth.
In the short term, increased sales through its 2 new stores will mean more tonnes of materials recycled into shoes (approximately an extra tonne in the first year they are operating) and more people employed directly and in the factory (growing to 30 in each).
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 enable Indosole to create significant positive social and environmental impacts, including waste reduction through recycling discarded tires and other waste materials into footwear, local employment creation, and heightened consumer awareness about sustainability. Impact will be assessed through metrics such as the volume of tires and other waste materials repurposed, jobs created, customer reach and engagement, and reduced environmental footprint. Indosole projects that opening two new stores, and the associated uplift in retail sales, will increase their impact by: You can see more on their impacts and measurement in the 2024 impact report linked below, as well as the attached raw data file.
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