Financial Innovations For Relief, Recovery, And Resilience Insights Reports.pdf

NAVIGATING
EMERGENCIES
FINANCIAL INNOVATIONS
FOR RELIEF, RECOVERY,
AND RESILIENCE
February 2024

© Copyright 2024 Impact Investment Exchange Pte. Ltd 2
This report was developed with the support of the Australian Department of Foreign Affairs and Trade
(DFAT), a leader in advancing the global gender-lens investing landscape and sustainable development
agenda. The Australian Government has a steadfast and ongoing commitment to be at the forefront
of efforts to promote gender equality and empower women and girls. As part of these efforts, DFAT
is a member of the Steering Committee of the Orange Bond InitiativeTM
, the world’s first sustainable
debt asset class for investing in gender equality, and has provided catalytic grant funding to support
the development of the Orange Bond ecosystem and the broader Orange Movement.
The Australian Government has funded this publication through the Department of Foreign Affairs
and Trade. The views expressed in this publication are the author's own and are not necessarily the
views of the Australian Government.
Impact Investment Exchange (IIX) is the pioneer in impact investing and a global leader in
sustainability. We have transformed the financial system so that women, the environment, and
underserved communities are finally given value and a voice in the global market. Over the last
decade, we have built the world’s largest crowdfunding platform for impact investing (Impact
Partners), operated award-winning enterprise technical assistance programs such as IIX ACTS, created
innovative financial products such as the Women's Livelihood Bond™ (WLBTM
) Series, and established
an Impact Institute and Research & Advisory practice to build the sustainable investing market.
To date, our work has spanned 57 countries, unlocked US$418 million of private-sector capital,
positively impacted over 159 million direct and household lives, and avoided over 1.83 million tons of
carbon. The foundation of IIX's work is IIX ValuesTM
, an innovative impact verification solution for every
organization that effectively measures the social and environmental impact of an investment and gives
value to the voices of the underserved. IIX’s numerous awards for its work include the Oslo Business
for Peace Award, the P4G State-of-the-art Partnership Award, the UN Global Climate Action Award,
and most recently the Environmental Finance Award for Innovation.
ACKNOWLEDGMENT: AUSTRALIAN DEPARTMENT OF FOREIGN AFFAIRS AND TRADE
REPORT DEVELOPED BY: IMPACT INVESTMENT EXCHANGE (IIX)

TABLE OF CONTENTS
Context................................................................................................................................. 4
IIX-DFAT Partnership: Building a New Era for Gender Empowered Sustainability................ 5
Relief: Access to Immediate Financing................................................................................. 6
Learning and Insights ............................................................................................................7
Case Study 1: SOLshare......................................................................................................... 8
Case Study 2: Fuchsia Shoes.................................................................................................. 9
Recovery: Adaptation and Investment Readiness...............................................................10
Learning and Insights ..........................................................................................................11
Case Study 1: Krakakoa ........................................................................................................12
Case Study 2: PlasticPay ......................................................................................................15
Resilience: Sustained Growth and Engagement .................................................................17
Spotlight: WCF Catalyzing IIX’s Women’s Livelihood Bond (WLB) Series................................18
Learning and Insights ..........................................................................................................19
Convergence....................................................................................................................... 20
Way Forward: The Orange Movement.................................................................................21

Women-focused Micro, Small, and Medium Enterprises (WSMEs) form the backbone of economic
development across the Asia-Pacific. The region has over 50 million WSMEs that provide employment
to over 100 million people. Thus, WSMEs are crucial to ensuring livelihood security. In addition, many
such WSMEs are deeply embedded in local contexts and contribute to the development and
sustainability of their immediate communities. The COVID-19 pandemic and escalating climate
disasters and emergencies have disproportionately affected women and WSMEs, impacting rural and
underserved communities and over 100 million entrepreneurs in the Asia-Pacific.1
The far-reaching and continued implications of emergencies have intensified the economic and
societal burden on women, even leading to an alarming rise in gender-based violence. These
implications include, but are not limited to, an increase in responsibilities at home, rising
unemployment rates, struggles to sustain businesses, and being overlooked by COVID-19 and disaster-
response policies. Some of the key challenges facing WSMEs include a critical lack of working capital,
diminished networks, and impaired access to resources, further disrupted by the pandemic. The
visibility and on-ground engagement of WSMEs also suffers significantly during emergencies.
The COVID-19 pandemic underscores a systemic problem prevalent during emergencies, climate
disasters, and conflicts. WSMEs bear the brunt during emergency situations, facing displacement,
income erosion, food insecurity, time constraints, and indebtedness. Climate-induced disasters could
potentially affect millions more women, with a striking 80% of climate-displaced individuals estimated
to be women.2
This acts as a ‘threat-multiplier’, with women more likely to live in poverty, face an
increased risk of violence, encounter more economic and societal barriers, and have fewer
opportunities to access financing.
Given their critical role in the economy, women and WSMEs are pivotal to driving economic revival
and resurgence. The intersection of gender with climate, agriculture, energy, and environment
positions women as integral and structural components of solutions. Supporting women and WSMEs
becomes imperative as countries transition from response to recovery and growth, which will help
build pandemic-resilient and climate-adaptive communities.
Even prior to COVID-19, the global community was struggling to meet the Sustainable Development
Goals (SDGs), and the pace and scale of progress for underserved women remained slow. With its
devastating impact on women and underserved communities, COVID-19 revealed how much more
needs to be done to build a truly inclusive future that reaches the last mile.
As families, communities, and countries look ahead, emergencies will continue to cause immense
stress on economic systems and financial institutions. Navigating from response to recovery, IIX
integrated innovative financing approaches into the rebuilding efforts, creating a three-pronged
Relief, Recovery, and Resilience framework. This approach empowers WSMEs as drivers of growth in
the post-COVID era, catalyzing the path toward a more resilient, inclusive, and sustainable future. In
light of the increasing risk of climate disasters and emergencies, this framework also enables the
building of stronger systems for the future.
1 Tackling the COVID-19 youth employment crisis in Asia and the Pacific, International Labour Organization. Available here.
2 Climate change exacerbates violence against women and girls, OHCR. Available here.
Context

IIX and DFAT have a shared vision for gender equality and economic prosperity, synergizing over a
decade of partnership. Collaboratively, IIX and DFAT facilitated an innovative Relief, Recovery,
Resilience (RRR) multi-stakeholder approach to address the aftershocks of the COVID-19 pandemic by
investing in women and leveraging technology as a key enabler. The geographical focus of the
intervention was SMEs and WSMEs in South and Southeast Asia with a special focus on Indonesia,
Cambodia, Vietnam, and the Philippines. While modest in size, RRR showcased an innovative approach
to navigating emergencies, with the immense potential to be replicated at scale.
• In the Relief phase, the immediate focus was on vital financial support to WSMEs, ensuring
continued survival amidst critical economic challenges. This involved providing bridge and
working capital financing, alongside access to key networks. The IIX Emergency Financing
Facility (IEFF) played a pivotal role, introducing a revolving fund structure - an innovative
solution designed to meet the immediate capital needs of WSMEs.
• In the Recovery phase, IIX equipped WSMEs with innovative technology-driven solutions,
fostering business continuity and rebuilding efforts to overcome significant challenges related
to on-ground engagement and resource access during the pandemic. Through IIX’s technology
platforms, Impact Partners and IIX Values, WSMEs received continued access to networks and
investors, along with support to craft compelling capital raise narratives. The wide range of
support unlocked by these technology platforms was essential in contributing to the growth
journey of WSMEs.
• In the Resilience phase, WSMEs were provided support and granted access to longer-term
capital that helps build sustainability and scalability in their business and impact. The
Women’s Catalyst Fund (WCF), a catalytic capital mechanism closely linked with IIX’s Women's
Livelihood Bond (WLB) Series, was developed to unlock further financing for WSMEs. This
innovative financing mechanism provided sustained support to foster resilience within
WSMEs and the communities they serve.
By mitigating investor risk perception and correlating impact outcomes with financial performance,
the RRR intervention facilitated the sustained recovery of WSMEs, building their long-term resilience
to future shocks and climate emergencies. This approach aligns with IIX’s broader Risk-Return-Impact
investment philosophy, which integrates positive environmental and social impact in the investor
utility function. This also implies that WSMEs contribute to societal and planetary well-being while
presenting investors with better risk profiles and return outcomes, ensuring a sustainable and high-
impact investment journey. The RRR intervention further hypothesized and demonstrated this Risk-
Return-Impact framework.
IIX-DFAT Partnership: Building a New Era for Gender Empowered Sustainability

Relief: Access to Immediate Financing
During emergencies such as the COVID-19 pandemic, initiatives to support SMEs are often driven or
supplemented by government measures such as concessionary loans, credit extensions, and tax
incentives, among others. However, given that the pandemic put an increased burden on women,
these measures had limited benefit to WSMEs in particular, which were often overlooked by COVID
response policies.3
The challenging environment, coupled with pre-existing barriers faced by WSMEs
such as the informal nature of business, preconceived notions of investors, and lack of access to
finance or assets, accentuated the urgent need for liquidity measures to maintain business continuity.
For the Relief intervention of the RRR program, IIX developed
an innovative financing facility, the IIX Emergency Financing
Facility (IEFF). During the COVID-19 pandemic, IIX’s direct
connections with impact-driven WSMEs revealed the
shortage of critical support available to such organizations. To
meet the immediate demand, the IEFF provided capital in the
form of low-interest loans to these WSMEs, offering crucial
working capital as a lifeline to keep ordinarily viable enterprises afloat during the crisis. Bridge
financing allowed these organizations to navigate the pandemic-induced turbulence, whether in terms
of supply chain shocks, reduction in market demand, or increase in investor risk aversion. In some
cases, the IEFF loans facilitated funding from private sector investors directly by providing match
funding, a condition for the disbursement of the private sector funds. In other cases, the strategic
influx of capital from the IEFF allowed WSMEs to survive through initial shocks and meet performance
expectations, enabling them to raise further capital from the private sector. In this way, IEFF’s strategic
issuance of low-interest loans played a pivotal role, unlocking almost US$ 5M and sustaining impact-
driven WSMEs through challenging times until they could thrive. Many WSMEs that received support
from the IEFF have since expanded, merged, or otherwise experienced overall growth.
The IEFF operates as a revolving facility (as seen in Figure 1), ensuring a sustainable impact loop. Once
a loan from the IEFF is repaid by a WSME, these funds will be re-loaned to another WSME in need of
a strategic capital injection at a critical juncture. Thus, the IEFF uses capital as a revolving resource,
multiplying the amount of capital available to support WSMEs. Often, IIX would pair these strategic
injections with active management advisory services to maximize the chance of survival for the
supported enterprises.
3 Policy Brief: The Impact Of COVID-19 On Women, UN. Available here.
Highlights
• 6 WSMEs received 8 low-
interest loans
• US$ 4,700,000 additional
private sector capital catalyzed
• US$ 795,000 of loans disbursed
Figure 1: The IEFF Mechanism

The IEFF has successfully achieved its goal of providing immediate relief to underserved enterprises
during times of emergency while encountering zero credit losses on its loans to date, exceeding all
projections and further strengthening the investment profile of supported WSMEs. The innovative
structure of the IEFF enabled a multiplier and catalytic effect to help crowd additional private sector
investment into WSMEs, maximizing the ability of the enterprises to stabilize and grow. Hence, the
IEFF helped balance long-term financial sustainability with positive gender, social, and environmental
returns. Once able to survive beyond the immediate moment of crisis, the supported WSMEs emerged
as attractive investment opportunities and could further access resources needed to rebuild and
create continued impact in their communities.
Learning and Insights
In the immediate aftermath of external shocks, emergency relief through working capital, facilitated
by innovative financing mechanisms like the IEFF, serves as a critical initial lifeline for WSMEs. It
provides supported enterprises with the opportunity to rebuild and realign. The widespread impact
of the IEFF is reflected in the substantial private sector capital raised by the supported WSMEs,
enhancing their capacity to generate positive, long-term impact outcomes.
• Catalytic capital crucial to crowd-in private investors
Investors often exhibit reluctance to invest in women and WSMEs, particularly during
pandemics and emergencies. Addressing this challenge necessitates a multi-pronged
approach, with innovative solutions including catalytic capital mechanisms. Targeted
investments can help mitigate investor risk perceptions, reduce barriers around small ticket-
sizes, and mobilize more investors.
By showing a demonstrative effect through an innovative facility, which proposed to revolve 3
times and crowd-in more investors each time, IIX was able to increase private-sector investor
participation in previously underserved WSMEs significantly.
The catalytic capital mechanism, coupled with interventions such as verified impact for
reduced operational risk and more investment-ready WSMEs beyond traditional investor
pipelines, helped create an integrated investor engagement and mobilize more private capital.
• Continued need for innovative financing mechanisms and linkages
The immediate one-time financing support to WSMEs can not only help the enterprises sustain,
but also create crucial linkages with other investors and financing mechanisms during and after
emergency situations. Continuous and evolving financing support facilitates sustainability and
scale-up in the longer-term.
The experience and learning from the IEFF has formed the bedrock for IIX to create a larger,
broader revolving Orange Loan Facility (OLF). The OLF is a revolving credit facility that provides
short-term loans to high-impact early-stage WSMEs and addresses their need for continued
catalytic capital. The OLF is hence a recurring source of sustainable financing that will catalyze
follow-on funding from other investors.

Case Study 1: SOLshare
Founded in 2014, SOLshare is a climate-tech company that focuses on providing access to sustainable,
affordable, and reliable energy services to vulnerable communities in Bangladesh. Its three product
offerings are ‘SOLgrid’, an electricity-sharing platform for off-grid communities that are dependent on
solar home systems for electricity; ‘SOLroof’, a rooftop solar panel installation service; and
‘SOLmobility’, a smart charging platform for electric 3-wheelers.
In 2020, the Bangladesh government doubled down on its electrification efforts, significantly reducing
SOLgrid’s addressable market under SOLshare’s original business model. The situation was further
exacerbated by COVID-19, which reduced market demand for SOLshare offerings and led to a drop in
sales. Additionally, the enterprise experienced delays in payments from donor-funded projects, a
significant source of revenue and cash flow. The combination of these factors had a significant impact
on SOLShare’s short-term liquidity.
In December 2021, IEFF provided a loan of US$
100,000 to SOLshare to ensure the continuation of
operations and finance the business development
of the SOLmobility offering. The funding from IEFF,
along with match funding, provided SOLshare
access to cumulative capital of US$200,000. This
enabled the enterprise to address cash flow
challenges caused by external events and make
necessary strategic shifts in its business lines as
Bangladesh receivered from the lingering impacts
of the pandemic.
The relief provided by the IEFF played a critical role in developing new business segments for
SOLshare, including SOLmobility and SOLroof, which installs rooftop solar panels in the commercial
and industrial sectors. IEFF support allowed SOLshare the opportunity and capacity to tap into the
growing market for solar electricity generation among the private and public sectors in Bangladesh.
The strategic capital inflow also allowed the company to bounce back from the impact of the pandemic
and further achieve significant growth in the following year, alongside significant social impact.
SOLshare has increased access to productive energy-use appliances for more than 2000+ base of
pyramid users, of which 75% are women and children. Such access significantly enhances efficiency in
household work, typically undertaken by women, providing them with increased time for income-
generating activities, while reducing indoor pollution that would significantly impact their health.
The enterprise generated a total revenue of US$ 454,000 in FY 2021-22 (ended June 2022), an increase
of more than 76% compared to FY 2020-21. SOLshare made a full repayment of the IEFF loan in April
2023 and unlocked follow-on funding of US$ 1M. Currently, SOLshare is in the process of closing a
Series A investment round, with a commitment of US $1.1 M.
Figure 2 An end-mile SOLshare user

Case Study 2: Fuchsia Shoes
Established in 2016, Fuchsia Shoes produces handcrafted artisanal footwear with a focus on improving
the livelihood of artisans by providing job security and increased income. A woman-owned and -led
venture, Fuchsia Shoes manages the entire value chain, from procuring raw materials and
manufacturing shoes in Pakistan to the sale of shoes in the United States. Fuchsia Shoes currently
employs 22 artisans in Pakistan directly and 50 indirectly. It has two production facilities in Karachi
and Sangla Hills with a combined capacity of 2,000 shoes a month.
In August 2022, Fuchsia Shoes found itself in a challenging position, grappling with the aftermath of
the COVID-19 pandemic that had significantly impacted its operations and revenue growth. In
response to the need for working capital to revive its production, the enterprise secured a loan of US$
200,000 from the IEFF. This crucial financial injection bolstered Fuchsia Shoes' ability to scale up
production and regain the momentum lost during the pandemic. The post-pandemic impact,
compounded by catastrophic floods in Pakistan, especially in the region where the artisans creating
the shoes lived, prompted Fuchsia Shoes to seek technical assistance from IIX. This support, facilitated
through the Impact Partners platform, enabled the enterprise and artisans to continue operations.
The relief provided by the IEFF was crucial for Fuchsia Shoes to help address complex market
conditions and working capital challenges exacerbated by the lingering effects of COVID-19. With US$
100,000 from the loan earmarked for marketing efforts, the enterprise worked towards supporting
revenue growth with immediate working capital infusion. Additionally, a portion of the proceeds was
directed to annual skills training for women with the purpose of employing them as highly skilled
artisans.
Since the loan disbursement under IEFF (from the loan that was repaid by other enterprises under the
revolving IEFF mechanism), Fuchsia Shoes has launched new products and expanded its retail sales
channel. The loan played a pivotal role in providing the necessary financial flexibility for Fuchsia Shoes
to adapt its strategy and weather pandemic-induced economic challenges. On the basis of IEFF,
Fuchsia Shoes has been able to raise funding from other investors. The company is looking to raise a
further US$ 2M in the next 18 months. The IEFF has also deployed US$35,000 as a bridge loan to meet
marketing demands and fulfil current orders for Fuchsia Shoes.
Figure 3: Amna, a Fuchsia Shoes artisan at the Sangla Hills production facility

Recovery: Adaptation and Investment Readiness
During the pandemic and emergency situations,
traditional avenues of business and connectivity are
often stunted. This places a significant burden on
WSMEs to connect with their value chain, engage with
investors, and access resources and markets while also
sustaining and growing their business. The impact of the
COVID-19 pandemic required WSMEs to adapt swiftly to
thrive in a new normal and ensure continued
engagement with their stakeholders to aid rebuilding for
scale.
During the Recovery phase, technology emerged as the most critical enabler, efficiently connecting
WSMEs with resources and investors and overcoming the challenges posed by restricted on-ground
mobility and engagement during the pandemic. IIX strategically customized and positioned two
technology platforms, Impact Partners and IIX Values, to facilitate the recovery of WSMEs.
The platforms were instrumental in developing and leveraging the impact and financial management
skills of the supported WSMEs, strengthening their readiness to raise capital and helping them
establish connections with investors and stakeholders. These efforts were pivotal in their path to
recovery.
Highlights
• ~750 WSMEs onboarded to Impact
Partners; 20 WSMEs received in-
depth technical assistance
• 650 digital impact measurement
reports generated
• $15.05M in capital raised
• $8.31M in training provided
• Impact Partners: Connecting SMEs and communities with capital
A debt and equity fintech platform for sustainable investing that connects investment-ready
enterprises to a network of over 1,300 investors to facilitate capital raise.
With a focus on key impact sectors, the platform has successfully closed over 80 investment
deals, unlocking $223 million in capital for SMEs. This has impacted 1.41 million lives and
avoided 1.4 million metric tons of CO2 emissions. Impact Partners plays a critical role in
identifying and addressing the barriers on both the supply and demand sides of capital,
providing technical assistance to SMEs to facilitate engagement with investors and raise
capital.
• IIX Values: Digital impact measurement and verification
A technology-driven and data-backed impact measurement and verification solution for
impact enterprises.
By measuring impact at the company level and then benchmarking region- and sector-specific
insights, IIX Values empowers enterprises to assess and refine their social and environmental
impact outcomes. The in-depth impact assessment can be verified through feedback over
mobile phone from last mile beneficiaries. It acts as a catalyst for enterprises to effectively
understand and deepen their positive impact performance to further engage with
stakeholders and investors with enhanced transparency and reporting.

During and after the pandemic, technology and digital platforms played a crucial role in enabling
WSMEs to maintain and enhance their engagement with value chain partners and investors. This
allowed the enterprises to develop further business traction, enhance visibility, pivot operations, and
strengthen impact performance for sustainable growth. IIX's Impact Partners and IIX Values allowed
WSMEs to measure and demonstrate impact, engage more investors, and unlock new pathways for
growth that balance impact outcomes with commercial scale.
• Technology and digital platforms critical for WSMEs during emergency situations
The lack of on-ground engagement during emergencies, such as the COVID-19 pandemic, poses
significant challenges for WSMEs to sustain and thrive with compounded constraints around
access, skilling, and investment. These challenges can be effectively addressed by tailored
interventions to support the WSMEs, backed by agile and reliable technology solutions.
By leveraging Impact Partners and IIX Values, IIX was able to provide critical support to WSMEs
during the pandemic. These platforms not only facilitated a curated access to resources and
capital, but also helped create a digital support ecosystem and community for continued and
sustained support. The digital presence and engagement also significantly improved visibility of
the enterprises with investors through webinars and facilitated interactions. Further, the
scalability and agility of the platforms helped build targeted assistance and a customized
journey for WSMEs to foster collaborations and unlock capital.
• Strong demonstrative effect of linkages between verified impact, reduced risk, and stable
returns on recovery and growth
The pandemic increased investor demand for transparent impact reporting. This approach
takes increased importance due to the lack of reliable data and intelligence on impact outcomes
that address investors’ risk perceptions and concerns regarding investing in potentially scalable
high-impact WSMEs.
By utilizing and building synergies between IIX Values and the Impact Partners platforms, IIX
was able to showcase the effect of its Risk-Return-Impact framework. The digital interventions
enabled capital flows into underserved but outperforming enterprises. An integrated approach
with transparent impact assessment enhanced investor confidence and demonstrated that
WSMEs deliberately creating positive impact have better risk and return profiles. This approach
resulted in a demand-induced evolution of IIX Values into multiple languages and services,
including the ESG+ assessment, Orange Bond Rating System, and Orange Seal (for WSMEs). The
Risk-Return-Impact framework was integrated across the RRR engagement to support
outcomes right from the Relief phase, where the IEFF outperformed expectations to have no
credit defaults to date, allowing the facility to scale and evolve.
• Technology is pivotal in creating and realizing additionalities
The IIX digital platforms were leveraged to create additional interventions aimed at unlocking
capital, such as in-depth technical assistance, tailored investor-WSME connects, and due
diligence support to help close deals. This correlated positively with improved impact and
business models, demonstrating that beyond immediate financing relief, strategic support plays
a pivotal role in the growth of WSMEs.

Case Study 1: Krakakoa
Krakakoa is a woman-led bean-to-bar chocolate maker from Indonesia that produces and sells high-
quality chocolate products. The chocolates are made using cacao beans sourced from Indonesian
smallholder farmers (the majority of whom are women) who practice sustainable farming methods.
Krakakoa manages the entire value chain from providing on-farm support to local farmers to managing
the production and sale of retail-ready artisanal chocolate products domestically and abroad. It also
enables women in its supply chain to view themselves as entrepreneurs by providing equal income
and livelihood generation opportunities.
Krakakoa’s business was heavily disrupted by the COVID-19 pandemic and the travel restrictions
imposed by the Indonesian government. The tourism sector in Bali and duty-free shops at airports
represented the large majority of Krakakoa’s sales before the pandemic, both of which virtually
vanished with the almost complete shutdown of international tourism and restrictions on domestic
travel in Indonesia. Krakakoa partially made-up for the lost market by pivoting towards domestic sales
(increasing its presence across Indonesia), online sales (through e-commerce platforms and its own
website store), and exports. However, the company required additional long-term capital to fully
recover and continue to grow.
In May 2022, Krakakoa received an IEFF bridge loan of US$ 20,000 to finance the enterprise’s
immediate cash gap as the company continued to seek various long-term funding options. The IEFF
loan enabled Krakakoa to keep operating while continuing to advance its discussions with potential
investors and strategic partners. Later, Krakakoa decided to move ahead with a strategic merger with
Slow Forest Coffee, a company that produces coffee through a regenerative agroforestry process in
Laos with plans to expand to Indonesia and Vietnam. As a part of the merger, Slow Forest Coffee
provided further funding to Krakakoa, which put it on stable financial footing and allowed it to
continue expanding its business.
Figure 4: Sabrina Mustopo, Founder and CEO of Krakakoa, along with Krakakoa’s last-mile stakeholders

Further facilitating recovery, Krakakoa utilized the IIX Values platform for impact assessment and
verification, receiving an initial impact score of 7.9 in 2022. Following IIX interventions, feedback from
stakeholders in the supply chain, and demonstrations on how Krakakoa products contribute positively
to communities and the environment, Krakakoa’s impact score increased to 8.8 in 2023 (as shown in
Figure 5).
This improvement is attributed to a range of factors that deepened Krakakoa’s commitment to
achieving positive social outcomes for both direct and indirect beneficiaries, with women comprising
about 70% of the last mile beneficiaries. Krakakoa’s direct beneficiaries receive increased access to
information and time to engage in recreational activities. Krakakoa's impact extends to indirect
beneficiaries, including facilitating education for children, especially girls, in communities. Further,
Krakakoa works on a multi-layered engagement model, providing training support from sowing to
harvesting to the smallholder farmers in its value chain. Krakakoa conducted training sessions for 150+
women on sustainable farming methods and practices, which further enhanced this impact pillar.
Krakakoa's environmental impact was strengthened through dedicated climate mitigation activities in
2023, building upon its prior climate adaptation and transformation efforts in 2022. Moreover,
Krakakoa demonstrated sector-specific advancements, such as transitioning to direct customer sales
and replacing previous wholesaler/distributor channels. This shift not only contributed to increased
yield and productivity, but also enhanced the income of smallholder farmers.
Krakakoa’s full Risk Score in 2023 showcases its efforts to minimize exposure to harm, reflecting a
comprehensive approach to risk management. This success in risk management, combined with the
improved impact score, enabled Krakakoa to build a compelling capital raise narrative, positioning
itself as an attractive impact investment proposition. In 2023, revenue surged, with the highest-ever
quarterly sales in March driven by a new café in Bali and the reopening of the tourism sector in
Indonesia. The support enabled training, equipment, and fair wages, particularly benefiting low-
middle income women workers. Notably, 100% of factory workers, predominantly women,
experienced a 27% income increase compared to industry standards. Krakakoa's commitment to
sustainability fosters economic growth and underscores its dedication to the empowerment of
women within the cocoa industry in Indonesia.

Figure 5: Excerpts from Krakakoa's IIX Values Impact Report with timeseries data for 2022 and 2023
IIX Values Impact Report - Krakakoa

Case Study 2: PlasticPay
PlasticPay, an Indonesian eco-preneurship enterprise, encourages communities to transform plastic waste
into something beneficial and virtuous. The collected plastic waste is transformed into granules and further
eco-friendly fiber and recycled fabric that can be used for pillows, dolls, beds, carpets, furniture,
automotive interiors, and non-woven/woven products. The enterprise focuses on climate change
mitigation, natural resource conservation, and empowering women through training and employment
opportunities. Facing economic uncertainties and in dire need of supply chain expansion during the
pandemic, PlasticPay sought urgent solutions for raising capital and widening its network.
With in-depth support from IIX, PlasticPay was able to engage with over 40 potential investors, foster
linkages with local enterprises across its supply chain, and receive crucial training support. PlasticPay also
utilized the IIX Values platform to measure and verify its impact at the last mile (as depicted in Figure 7).
The impact score of PlasticPay reflects its strong commitment towards climate change and on-ground
engagement with marginalized sections of the population under the output and outcome indicators.
Additionally, the company has been able to create an ecosystem to mitigate risks and reduce vulnerability
to hazards as reflected in their risk mitigation scores and coping capacity. With further focus on
environmental impact or other ecological enhancements, PlasticPay could further deepen its commitment
to sustainability and improve its risk score. Fostering better community engagement and well-being would
yield enhanced social outcomes.
Out of the 20,000 users of PlasticPay, around 60% are women, highlighting PlasticPay's contribution to
gender inclusivity in the eco-preneurship space. PlasticPay helps ensure better livelihoods for 3,300
ragpickers, 50% of which are women. Ragpickers collecting through PlasticPay experienced a remarkable
10x increase in income, showcasing the transformative financial potential of environmental solutions for
marginalized communities. This blend of economic and environmental impact underscores PlasticPay's
commitment to creating meaningful change. Further, PlasticPay engages with 40 SMEs, out of which 7 are
women-owned, and 15 are owned by persons with disabilities, each providing employment to 5-10
additional individuals on average. The enterprise has also partnered with 400 women artisans, contributing
to women’s entrepreneurship and economic advancement.
PlasticPay was featured on IIX Investor Webinar Showcases, facilitating further engagement with potential
investors as part of the comprehensive support provided by IIX Impact Partners. This was complemented
by PlasticPay showcasing its Reverse Vending Machine at the G20 event in Jakarta, garnering attention
from the Central Bank Governor of Indonesia. In 2022, within a year of active involvement and support
from IIX, PlasticPay’s revenue increased 9x to US$700,000 (from US $80,000 in 2021). PlasticPay is expected
to continue this growth trajectory to reach an expected revenue of US$3M by the end of 2023. PlasticPay
also collaborated with the Indonesian Ministry of Marine Affairs and Fisheries and PT Bank Syariah
Indonesia Tbk to introduce plastic bottle recycling technology, further enhancing its scale and impact.
Figure 6: IIX's Impact Partners team with Suhendra Setiadi, PlasticPay CEO

Figure 7: Snapshot of PlasticPay’s IIX Values Impact Report 2022
IIX Values Impact Report - PlasticPay

Resilience: Sustained Growth and Engagement
Catalytic capital and rebuilding support play a pivotal
role in empowering women and WSMEs during
emergency situations and shocks, such as the COVID-19
pandemic and natural disasters. At the same time, it is
important to develop mechanisms and systems that help
create WSMEs that are systematically resilient to
emergencies. Building such long-term systems enhances
economic growth by making the communities that the
WSMEs serve more disaster-adaptive and resilient.
Recognizing this priority, during the Resilience phase, IIX focused on providing strategic long-term
capital to WSMEs at timely intervals enabling them to scale rapidly and sustainably. To achieve this,
IIX developed the Women’s Catalyst Fund (WCF) as a gender-lens investment vehicle designed to
catalyze the inflow of capital into investment-ready WSMEs. Operating as an open-ended and blended
catalytic fund, WCF is an innovative financial structure that supports the replication of cutting-edge
financial instruments such as IIX’s Women’s Livelihood Bond (WLB) Series (as shown in Figure 8). By
providing first-loss capital to the WLB Series, WCF effectively mitigates the risk perception associated
with investing in WSMEs for apprehensive investors and eliminates the lead time to source
subordinated debt capital for each WLB, adding efficiency and scalability. The subordinated debt
investment by the WCF into the WLB Series successfully catalyzes further investment, particularly
from the private sector. This approach has resulted in a 9x leverage on WCF’s investment.
The support from DFAT to the WCF through RRR further catalyzed public sector funding from other
partners and agencies, including KOICA, Taiwan ICDF, and US DFC into the WCF, further helping scale
the WLB Series with continued catalytic support.
Highlights
• 4 WLBs, where WCF provides
subordinate capital
• US$ 23M in catalytic capital
unlocked into WCF
• Over US$ 184M in private funding
unlocked through WLBs, linked
with the WCF
•
Figure 8: The WCF Mechanism

Spotlight: WCF Catalyzing IIX’s Women’s Livelihood Bond (WLB) Series
IIX’s WLB Series cumulatively supports WSMEs that provide female-centred solutions to economic and
social disruption. Acquiring capital during times of need remains a key challenge in WSME growth
journeys. The accelerated roll-out of the WLB Series amplifies the impact on underserved women,
resulting in more women supported, more quickly. Across 6 installments, the WLB Series has
meaningfully created a positive impact for over 2 million women and their families at the last mile.
The WCF has been critical in the successful replication of the WLB Series, enabling the mobilization of
private sector capital at scale.
Despite the challenging macroeconomic environment and wary investor sentiments, each WLB
issuance has successfully closed and increased in size. Notably, the WCF played a crucial role in
enabling the WLB5 issuance during the COVID-19 pandemic, mobilizing US$50M.
Figure 9: Growth of the WLB Series catalyzed by the WCF
The WCF supported WLB3, designed as a COVID-19 Resilience Bond; WLB4Climate with 33% of the
proceeds at the gender-climate nexus; and WLB5, the world’s first Orange Bond (as depicted in Figure
9). Altogether, across the WLB 3, 4, and 5, the WCF has directly and indirectly impacted the lives of
more than 321,615 women so far. In December 2023, IIX closed WLB6, the largest Orange Bond in the
market, expected to empower over 880,000 women and girls in the Global South. WCF provided a
US$12M subordinated loan to the WLB6, helping crowd-in an additional US$88M in private sector
capital, resulting in a total mobilization of US$ 100M towards the economic and social empowerment
of women in underserved communities.
Testimonials from the last mile
27.7 30
50
100
3 3 5 12
0
20
40
60
80
100
120
WLB3 WLB4 WLB5 WLB6
WLB (in US$ M)
WCF (in US$ M)
“A loan of US$ 680 from a WLB portfolio company helped me purchase more
materials and expand my store. Due to the loan, I now earn an additional US$
170 per month, and I am also able to save 50% of my increased income. I want
to use these savings for my child's education and ensure that my daughter
graduates from college. This is my 11th loan from the portfolio company, and
I plan to take more loans in the future to further grow my business.”
Angela, a microfinance borrower in Indonesia
“I have been supplying rice to a WLB portfolio company for 5 years. I am
grateful for my stable income, and with access to training programs provided
by the company on organic and sustainable rice farming, I now have
increased my yield per harvest by 20%. By working here, I am also able to
increase my income by receiving a larger value of premium, and I am finally
financially resilient enough to sustain myself and my family.”
Bopha, a farmer working in the sustainable agriculture sector in Cambodia

Financing, technical assistance, and a holistic support ecosystem during emergencies such as the
COVID-19 pandemic go beyond providing one-time interventions to building back better. Systems that
help build resilience enable WSMEs to thrive, contribute to economic growth, and create stability
within underserved communities.
Drawing upon this experience, IIX developed the WCF to demonstrate the impact that catalytic capital
can have beyond survival to sustained community prosperity, creating much needed community
resilience in the process. The WCF further highlights the pivotal role of catalytic capital and de-risking
mechanisms to mobilize investors, foster innovation, and eventually enable resilience. The strategic
innovation of the WCF's first-loss mechanism has been very instrumental, opening avenues for
substantial impact and bringing in diverse stakeholders.
• De-risking and catalytic capital mechanisms instrumental in galvanizing large scale funding
The experience and outcomes from the WCF underscore the compelling impact of innovative
financing mechanisms. Long-term resilience-building requires strategic capital at timely
intervals into the WSMEs, which, in turn, requires attracting and engaging large scale funding
through innovative mechanisms that mitigate and manage perceived investment risk.
By setting the stage for collaborative engagements with other public funders, WCF galvanized
wider support and unlocked additional capital from other government agencies and funders.
The unique design of WCF as a risk management structure enabled governments to catalyze
private capital into the WLB Series. This collaborative approach and WCF's strategic role in
scaling the WLB Series demonstrates how innovative financing mechanisms can attract a wider
array of investors, foster economic resilience, and enable impact at scale.
• Interconnectedness across interventions key to building long-term systemic resilience
A crucial insight lies in the cross-linkages forged across diverse solutions and platforms. The
synergies within the RRR interventions from emergency financing to technology platforms,
investment readiness, and sustained capital inflows creates a holistic pathway for WSMEs to
sustain and thrive. The innovative interventions leveraging technology and market connections
act as catalyst, providing essential business realigning support and seamlessly integrating with
financing solutions for sustainable scale.
• ConvergenceDe-risking and catalytic capital mechanisms instrumental in galvanizing large
scale funding
The experience and outcomes from the WCF underscore the compelling impact of innovative
financing mechanisms. Long-term resilience-building requires strategic capital at timely
intervals into the WSMEs, which, in turn, requires attracting and engaging large scale funding
through innovative mechanisms that mitigate and manage perceived investment risk.
By setting the stage for collaborative engagements with other public funders, WCF galvanized
wider support and unlocked additional capital from other government agencies and funders.
The unique design of WCF as a risk management structure enabled governments to catalyze
private capital into the WLB Series. This collaborative approach and WCF's strategic role in
scaling the WLB Series demonstrates how innovative financing mechanisms can attract a wider
array of investors, foster economic resilience, and enable impact at scale.
• Interconnectedness across interventions key to building long-term systemic resilience

The convergence of learnings from RRR underscores critical themes that have emerged as
cornerstones for building resilience, fostering inclusivity, and driving sustainable growth. Four key
pillars converge to form a comprehensive framework to navigate emergencies in the context of
women and WSMEs.
The convergence of key learnings forms a holistic narrative along the journey of an WSME, positioning
the RRR intervention as a dynamic framework that goes beyond immediate response to proactive
systemic transformation. It lays a guiding approach to navigating emergencies for sustained recovery,
resilience, and inclusion of women and WSMEs.
Convergence
• Additionality: Unlocking Capital for Women and WSMEs
The RRR intervention spotlights the importance of additionality, where capital can play a
catalytic role in unlocking larger, risk-averse downstream investments. Investors from the
public and private sectors can be further crowded-in to play a role. Bridge and catalytic capital
are integral in demonstrating a WSME’s ability to unlock additional resources and generate
both financial and social returns. Government financing emerges as a crucial component,
serving as an enabler to unlock private sector investments, thus creating a ripple effect that
mobilizes capital at scale and paves the way for sustained recovery and growth.
• Technology: Catalyzing Market Access and Financial Confidence
By placing women at the forefront of capital markets through technology, the RRR intervention
leverages digital solutions to create a robust ecosystem where access, efficiency, and
adaptability empower WSMEs to navigate crises and grow. With increasing climate and other
emergencies, digital platforms play a critical role in ensuring continued and enhanced access
to opportunities for underserved stakeholders. Innovative technology platforms can help
reduce the investor risk perception associated with investing in WSMEs and leverage
innovative financing solutions.
• Intersectionality: Multi-Dimensional Impact for Resilience and Prosperity
The RRR intervention strategically builds a cross-sector pipeline of investment-ready WSMEs
across various growth stages while also operating at the gender-climate nexus. This deliberate
approach enhances engagement with investors while establishing crucial linkages that extend
beyond financial transactions, highlighting the multi-dimensionality of investing in women -
contributing to economic empowerment and broader societal and environmental impact,
creating a multiplier effect that fosters resilience, prosperity, and peace.
• Financing: Overcoming Investor Risk Perceptions
Innovative finance is crucial to unlocking capital, as it helps mitigate the high risk perception of
investing in women and WSMEs, particularly during challenging situations such as the COVID-
19 pandemic. Innovative mechanisms and structures and catalytic capital, including
subordinated debt provided by the WCF and revolving loan facilities such as IEFF, facilitate de-
risking. For instance, by taking first loss positions, the WCF enables more private sector
investments that can be leveraged for large scale and sustained financing.

The culmination of the RRR program sets the stage for a forward-looking strategy that combines the
power of technology, climate action, and gender inclusivity. Demonstrating this paradigm is the
Orange Movement, accelerated by the interventions under the RRR program in response to the severe
impact of the COVID-19 pandemic. Orange is the color of United Nations' SDG 5: Gender Equality,
signifying a commitment to systemic change in financial markets and symbolically upholding the
genesis of the movement through Orange Bonds, the world's first debt asset class dedicated to gender
equality. The Orange Movement is synonymous with representation in decision-making, transparency
in impact reporting, and an intersectional approach to today’s most critical inclusive development
challenges.
The Orange Movement charts a multi-stakeholder path forward, aiming to unlock US$10B to empower
100 million women, girls, and gender minorities by 2030. The Orange Movement is governed by a
Steering Committee, representative of those driving gender equality through their work in a variety
of industries including IIX, DFAT, the United States Development Finance Corporation (DFC), Nuveen,
ANZ Bank, Shearman & Sterling, and water.org (as shown in Figure 10).
The Orange Movement draws significantly from the RRR interventions, embodying a strategic
convergence of technology, climate considerations, and gender inclusivity by bringing together
stakeholders to further support and enable financing for WSMEs. Central to this is the application of
risk and catalytic capital, with a focus on innovative financing mechanisms, and the use of technology
to drive impact measurement and capital raise opportunities for underserved women-focused
enterprises.
In particular, three key pillars informing the Orange Bond principles were premised and supported by
the learnings and insights from the RRR Program -
• Facilitating greater availability of catalytic or blended capital with gender and environment focus
• Incorporating impact management tools focused on transparency in reporting and measurement
• Engaging capital providers and potential or existing pipeline enterprises to unlock more financing
Way Forward: The Orange Movement
Figure 10: Heatmap of the Orange Movement and Members of the Steering Committee
Figure 9: Heatmap of the Orange Movement and Members of the Steering Committee

The interventions and learning from RRR and DFAT’s continued support have been instrumental in
shaping the Orange Movement, helping bring the first Orange Bond issuances to market, engaging
+76,000 signatories across six continents, and catalyzing the broader ecosystem through research,
data analytics tools, and key convenings. Orange Bond issuances, underpinned by the Orange Bond
Rating system, have garnered a stellar performance record, upholding the Risk-Return Impact thesis
and ensuring a high standard of credibility in financing inclusive, climate-just projects.
Further building on the RRR intervention, the success of and learnings from the IEFF have led to the
creation of the Orange Loan Facility. The Orange Loan Facility will utilize a similar revolving structure
and is designed to serve the ongoing capital needs of underserved WSMEs while attracting additional
capital to scale impact. Orange Portfolio Assessments and the Orange Seal further strengthen the
Orange Movement, offering a comprehensive set of tools for assessing and confirming the impact of
financial interventions, and tech-enabled platforms shaped by RRR insights. These tools empower
investors, issuers, and pipeline entities to navigate the financial landscape with a heightened focus on
gender inclusivity and climate action.
Amidst the widening SDG financing gap and increased occurrences of climate disasters and
emergencies, the Orange Movement, informed by the insights from the RRR program, recognizes the
pivotal role played by the convergence of technology, innovative financing, and gender inclusivity as
the foundation of a resilient and equitable global economy. The Orange Movement is helping drive
sustained and systemic transformation towards building a gender-just, climate-safe financial system
that works for all.

www.iixglobal.com
info@iixglobal.com Impact Investment Exchange (IIX) iixglobal

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