Vietnam has quickly become a global powerhouse in agriculture, with over $53 billion in agricultural exports recorded in 2023. The agriculture sector—responsible for over 14% of the nation’s GDP and employing roughly 40% of its workforce—serves as a major pillar of Vietnam’s economy. At the heart of this sector are small and medium-sized enterprises (SMEs)—the agribusinesses, processors, and cooperatives that aggregate, process, and distribute agricultural goods from smallholder farmers to both domestic and international markets. These agri-SMEs play a crucial role in Vietnam’s supply chain, yet they face major challenges with financing, modernizing operations, and meeting international standards.

With the Vietnamese government pushing hard for modernization, policies promoting land rights and mechanization have sparked growth in productivity. However, agriculture financing remains largely underserved by the formal banking sector. Conservative banking practices often push agriSMEs toward expensive predatory informal lenders, which hinders their ability to invest in growth and modernization. This gap represents a massive opportunity in Vietnam’s agri-finance market, creating a critical need for solutions tailored to their specific financing challenges.

TechCoop’s platform helps agriSMEs gain access to financing, secure better market opportunities, and increase both their productivity and profitability. By providing agri-SMEs with access to structured financing, TechCoop empowers them to invest in advanced technology, improve processing capabilities, and scale operations. TechCoop’s impact extends beyond finance. The company also helps to open market access and offer tech solutions for SMEs, particularly in traceability and sustainable sourcing—key factors that international buyers increasingly demand.

Why we invested in TechCoop:

• Large Underserved Markets: SMEs form the backbone of Vietnam’s agri industry with over 50k fragmented players, yet they remain largely underserved by traditional banks. This gap presents a lucrative opportunity that will continue growing in the future. For example, Vietnam’s fruit & vegetable export alone grew by 33% in the first 10 months of 2024, achieving a record-high number, and the broader agri-export sector is expected to continue expanding as the country capitalizes on its Free Trade Agreement (FTA) privileges.
• Strong Tailwinds: Agriculture is a priority sector in Vietnam, benefiting from extensive government support through land reforms, cluster development, targeted subsidies, and infrastructure modernization. The government is now prioritizing technology adoption to drive further growth and aims to double FDI in agriculture to $34B by 2030. These strategic initiatives lay a strong foundation for a thriving and competitive agricultural industry.
• Seasoned Founders: The founding team brings a wealth of experience from their tenure at Nafoods, an SME agribusiness in Vietnam. Their deep sector knowledge and extensive networks have driven a clear, well-executed strategy that sets them apart. The team’s superior performance and execution quality continue to impress, solidifying their position as standout operators in the industry.
  
• Creating Impact & Value: TechCoop empowers Vietnam’s SMEs and smallholder farmers to unlock their growth potential by addressing critical financing and operational challenges. Its digital solutions not only streamline SME operations but also open new opportunities for market expansion, efficiency, and profitability. By transforming the way these businesses operate, TechCoop is driving meaningful economic impact while fostering long-term value creation in the agricultural sector.
• Further Scale-up Opportunity: In just two years, TechCoop has consistently delivered over 100% annual growth, showcasing exceptional performance and market demand. However, the journey has just begun as the company is starting to tap into the high-growth export sector. This expansion will further accelerate growth and improve profitability.

Investing in TechCoop is an opportunity to support a high-impact, scalable solution that empowers Vietnam’s agri-SMEs to thrive in a competitive global landscape. TechCoop’s work aligns with our vision of economic empowerment and sustainable growth. By providing access to affordable capital, enabling agri-SMEs to meet export standards, and facilitating their journey toward financial sustainability, TechCoop is transforming Vietnam’s agriculture sector from the ground up.