Mandala Capital, a private equity fund investing in the agriculture and food sectors across South and Southeast Asia, announced last Thursday that the Green Climate Fund (GCF) has officially approved the Mandala Capital SSEA Food Fund at its 43rd Board Meeting.
Mandal Capital said in a statement that GCF committed $36 million as an anchor investor in the $250 million blended finance fund aimed at accelerating climate adaptation across the region’s agrifood systems.
It is noted that agriculture and food systems across South and Southeast Asia face a significant financing gap, despite their vital role in regional livelihoods and global food security.
Agriculture contributes to 13 percent of regional GDP and employs over one-third of the population, yet investment in climate-resilient agriculture remains insufficient.
At the same time, climate change is expected to reduce crop yields by 10 percent to 20 percent in the coming decades, threatening the livelihoods of millions of smallholder farmers.
“For years, we’ve heard that private finance is hard to mobilize for climate adaptation, today, Mandala Capital and the GCF are proving otherwise,
“Through the SSEA Food Fund, concessional capital from GCF is unlocking, through Mandala, millions in private investment that will strengthen the resilience of thousands rural households across three Southeast Asian countries.” said Demetrio Innocenti, Climate and Gender Specialist at Mandala Capital.
Through GCF’s commitment, Mandala Capital will mobilize additional private investment to scale climate adaptation solutions and strengthen value chains that support over 12 million people across South and Southeast Asia.
“This partnership demonstrates how blended finance can bring the private sector to the forefront of climate action, mobilizing investments that strengthen food security and build climate resilience across the Philippines and the region,
“The Philippines’ NDA welcomes Mandala Capital’s commitment to channel a portion of the fund’s investment into local initiatives, supporting innovative SMEs that can deliver real, scalable impact. This initiative underscores how private capital can be effectively leveraged to accelerate resilience and transformation in the agrifood sector.” Said Joven Balbosa Undersecretary, International Finance Group, Philippines NDA.
According to the statement, Mandala Capital SSEA Food Program will invest in profitable, scalable companies that are driving the shift toward more affordable, accessible, and climate-resilient food system.
Its primary climate rationale addresses the region-specific challenges like food wastage, price surges, malnutrition, low agricultural productivity and escalating protein demands.
Meanwhile, Uday Garg, Founder and Managing Partner at Mandala Capital, said with 15 years of experience, a team based in South and Southeast Asia, strong strategic partnerships, and a deal pipeline built through long-standing relationships, Mandala Capital is well positioned to deliver strong financial return while driving climate resilience.
“The GCF investment reinforces the climate ambition and provides the blended finance structure needed to bring in additional private capital and scale transformative adaptation solutions across the region in the agriculture and food sector.” he added.
It is noted that Mandala brings a proven track record, having successfully exited 80 percent of its investments across its first two funds, demonstrating the team’s ability to execute and deliver value for investors.
“The Mandala Capital SSEA Food Program is strongly aligned with GCF’s strategy. It will strengthen food and income security by investing in small and medium enterprises that support climate-resilient agriculture across Southeast Asia,
“The blended finance structure will mobilize private capital into adaptation-focused investments via a sustainable financing model which will build long-term resilience”, said Kavita Sinha, Director of the Green Climate Fund’s Department of the Private Sector Facility.
With GCF’s anchor commitment, Mandala Capital said the firm is now raising its $250 million blended finance fund to scale climate adaptation solutions and build more resilient food systems.
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