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US$715 billion<\/strong><\/h3>\n<\/li>\n<\/ul>\n
Market value of the global impact investing industry in 2020, up from US$502 billion in 2019, according to non-profit organisation Global Impact Investing Network (GIIN)<\/p>\n
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More than 17 million<\/strong><\/h3>\n<\/li>\n<\/ul>\n
Low-income individuals have benefited from the solutions funded by UOB Venture Management\u2019s first Asia Impact Investment Fund, it says<\/p>\n
In 2019, the partners launched a second impact fund \u2014 the AIIF II \u2014 which raised more than US$60 million by its first close in December. It remains open for subscriptions and has a target of US$100 million by its final closing, likely by year-end.<\/p>\n
The goal of AIIF II is to make equity investments of US$1 million to US$15 million in high-growth companies in agriculture, education, healthcare and logistics, or ones that can boost accessibility of housing, sanitation, clean water and energy.<\/p>\n
To date, UOBVM says AIIF I investees have provided healthcare or nutrition to more than two million adults and children from low-income households, enabled access to finance for more than 680,000 micro-entrepreneurs or farmers, and linked more than 12 million low-income young people up to quality education.<\/p>\n
Managing and measuring good done<\/h2>\n
Such benefits to target beneficiaries are tracked closely, as impact measurement is a key facet of impact investing.<\/p>\n
Impact measurement could even be a sign of the segment\u2019s growing maturity. According to the IFC, clear impact metrics are crucial as they allow investors to measure their contributions, improve their effectiveness and demonstrate accountability.<\/p>\n
It notes that more assets were invested with identifiable impact management systems in 2020, compared to 2019.<\/p>\n
UOBVM also believes in the importance of impact measurement.<\/p>\n
It was the first Southeast Asian signatory of the Operating Principles for Impact Management in 2019, the year the IFC launched it as an industry framework and reference. The nine principles cover the full investment cycle, from fund formation and deal sourcing to exit. It provides a systematic approach that allows funds to implement a variety of measurement frameworks and tools.<\/p>\n
It also requires external verification, which Mr Seah says is key for transparency. \u201cWe believe this alignment is important to assure investors of the consistency in reported results and allay concerns over impact washing.\u201d<\/p>\n
\u201cAs an impact investor, we want to work with the global investment community in advancing best practices in impact investing and to share experiences,\u201d Mr Seah adds. UOBVM is also a signatory to the UN-supported Principles for Responsible Investments and a member of the Asia Venture Philanthropy Network.<\/p>\n
\u201cWe focus on tracking metrics that are meaningful to investees while illustrating the depth of impact on beneficiaries, enabling our investors to have a better understanding of the impact of the portfolio.\u201d<\/p>\n
Unleashing the power of capital for social good<\/h2>\n
Across emerging Asia, UOB Venture Management (UOBVM) has identified, and continues to see, opportunities for capital to improve livelihoods and reduce inequality, says Mr Seah Kian Wee, CEO of UOB Venture Management (UOBVM).<\/p>\n
Its Asia Impact Investment Fund (AIIF) I was the lead investor in the 2017 Series B funding round of Ruangguru, an Indonesian education technology company. Ruangguru provides affordable digital education content to students, particularly those in remote rural areas.<\/p>\n
Ruangguru has since expanded to Vietnam and Thailand, and now serves more than 20 million users.<\/p>\n
![](\"https:\/\/static.straitstimes.com.sg\/s3fs-public\/articles\/2021\/10\/07\/ruangguru_indonesia.jpg\")
Education technology company Ruangguru provides students with affordable digital education content. PHOTO: UOB<\/figcaption>\n<\/figure>\n<\/p>\n \u201cEven with the pandemic school closures, Ruangguru ensured students\u2019 access to its learning platform and worked with large telecommunications companies to provide free internet access,\u201d says Mr Seah.<\/p>\n
More than 10 million children accessed the free online school that Ruangguru offered last year, while more than 200,000 teachers tapped on its free online training content.<\/p>\n
UOBVM also adds value post-investment through active board participation and tracking the impact on target beneficiaries. For Ruangguru, this goes down to granular data such as student numbers in cities versus remote areas, affordability, improvement in test scores, and more.<\/p>\n
Besides education, AIIF I is also helping to increase access to healthcare across Indonesia through its fund. It was the lead investor in the 2019 series B financing round of digital healthcare platform Halodoc.<\/p>\n
More than 80 per cent of teleconsultations with the more than 20,000 licensed doctors on Halodoc are used by patients living outside of cities like Jakarta and Surabaya, some of whom would not otherwise have access to specialist doctors.<\/p>\n
Another challenge faced by rural populations in Indonesia is access to banking services.<\/p>\n
Recognising that need, AIIF invested in PT Amartha Nusantara Raya in 2019, before raising its stake in the company earlier this year. Amartha is a fintech microfinance provider that started in a small village in West Java in 2010 with a focus on female borrowers in rural areas.<\/p>\n
It has since supported female micro-entrepreneurs in more than 23,000 villages in Java, Sumatra and Sulawesi, helping them through loans and financial education courses. Amid the pandemic\u2019s challenges, Amartha continues to roll out help such as training support to launch new micro-businesses.<\/p>\n
AIIF’s effects<\/h2>\n
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