Singapore-based private equity and venture capital investment firm Heritas Capital has invested S$2 million ($1.5 million) in Bettr Group, a social enterprise focused on specialty coffee and beverages, according to an announcement on Friday.
The investment marks the first deployment from Heritas’s Asia Impact First Fund (AIFF), which secured a $20 million first close in March this year following an anchor investment from DBS. AIFF, launched in August last year, has a target of $50 million.
The investment will help Bettr widen its training programmes to upskill those from marginalised communities—single mothers, youth-at-risk, ex-offenders—and subsequently hire them. Bettr also supports small-holder coffee farmers and promotes responsible sourcing and sustainable farming practices, it said. It has been supported over the years by many philanthropy funders including the DBS Foundation.
Bettr, founded in 2022, plans to solidify its footprint in Singapore and support weaker sections through education and inclusive employment, and eventually scale in the region, said its CEO and founder Pamela Chng.
This aligns with the AIFF’s stated aim of improving lives and livelihoods and protecting the environment. The fund had said in March that it seeks to back 10-15 innovative and high-growth social enterprises, investing in the venture and early growth stages with ticket sizes of up to $3 million.
“We have a pipeline of social enterprises from across the region and have been looking at India, China, Hong Kong, and Taiwan to name a few,” said Chik Wai Chiew, Heritas Capital’s CEO and executive director, who added that it remains open to the possibility of further contributions to Bettr Group.
Heritas currently manages seven funds, some in the process of exiting investments while others actively deploying capital.
The three funds which are actively deploying are the impact-growth vehicle Heritas Growth Fund III, impact-venture vehicle Heritas Venture Fund II, and AIFF. Heritas Growth Fund III and Heritas Venture Fund II were launched in 2021 and are about 40% deployed.
“Patient catalytic capital is key in enabling social enterprises to thrive, considering that businesses pursuing dual bottom lines require experimentation to develop innovative solutions, and often require a longer time horizon to fulfil their potential,” added Chiew.