Who – the protagonist
Sarah Amir, a distinguished undergraduate senior at the Faculty of Economics and Business, Universitas Indonesia.
What?
At college, Sarah discovered impact investing, a financial approach that addressed both profit-making and social-environmental challenges, aligning monetary checks with values.
This type of investment sought to generate not only financial returns but also positive social and environmental impact, addressing sustainability concerns across various sectors.
Peer-to-peer (P2P) lending had emerged as an appealing avenue for impact investing, facilitated by innovative fintech (financial technology) firms.
Due to her family’s agricultural background, Sarah invested in Agrise, a P2P lending fintech company, which aimed to bridge the information gap within the agricultural sector by connecting farmers, investors, and landowners.
Why?
For her initial investment, Sarah chose hybrid corn crops, investing 10 million IDR for a two-year period (equivalent to US$703), leading to a profitable return, coupled with insights on sowing and harvesting timelines, as well as the environmental benefits of her investment.
Eager to continue her impact-driven journey, Sarah expanded her investment portfolio with three additional spaces, investing 6 million IDR ($421) in Californian papaya crops to be cultivated in the Indonesian region of West Java.
However, this is where things started to go wrong.
When?
As 2023 progressed, Sarah’s correspondence with Agrise dwindled and then stopped, despite her best efforts.
In mid-April 2023 Sarah received a bank transfer on her hybrid corn investment, but the amount covered only 35% of her total investment, leading to a substantial loss.
Later in 2023 her concerns deepened as her Californian papaya investments reached the principal payback date, coinciding with the end of her communication from Agrise.
Where?
There were a number of P2P lending fintech companies in Indonesia who specialised in industries such as agriculture, fisheries and animal husbandry.
What next?
Sarah decided to return to impact investing after graduating and landing a position at a multinational corporation, where her substantial income allowed her to explore investment avenues.
But she had nagging questions from her past experience with Agrise: why did her investments fall short of her expectations? Where did she go wrong?
On the reasons for writing the case…
Aulia said: “There are many novel discoveries in impact investment that are advertised heavily to society, given that it has sustainable value and financial returns. Millennial investors, in particular, are new to having sizable stipends and cash inflows which they are often confused on where to spend. The case highlighted just that, focusing on decision making opportunities for sustainable investment.”
On the case writing challenges…
Aulia continued: “The largest challenge when writing the case was finding reliable and multiple sources for the green peer-to-peer lending business model for the consideration of the millennial investor. We wanted to make the case as relevant as possible to the readers.”
On teaching the case…
She added: “We deployed anonymous polling, just before the small group discussion for the case. This method elevated the case teaching. The students were giving responses that were outside the box and relevant to the case. Students were reading the case before the class session making it possible to have fruitful discussions on the case questions.”
On how students react to the case…
She commented: “Our energy came from the students. The students had concerns on sustainability and were aware about the existence of these green impact investment opportunities.
“However, most students hadn’t registered for peer-to-peer platforms so they hadn’t enjoyed first-hand experience of it. The case helps to shed light on the risks and rewards of green peer-to-peer lending and they are very happy to learn about this.”
On case writing tips…
Aulia concluded: “Our top tip is to have a clearly defined problem. There might be a tendency, when researching the case, to include too much information. Some of it is actually irrelevant and not needed in the case. We need to be aware of creating a direct and succinct case which is interesting to read.”
The case
Who – the protagonist
Sarah Amir, a distinguished undergraduate senior at the Faculty of Economics and Business, Universitas Indonesia.
What?
At college, Sarah discovered impact investing, a financial approach that addressed both profit-making and social-environmental challenges, aligning monetary checks with values.
This type of investment sought to generate not only financial returns but also positive social and environmental impact, addressing sustainability concerns across various sectors.
Peer-to-peer (P2P) lending had emerged as an appealing avenue for impact investing, facilitated by innovative fintech (financial technology) firms.
Due to her family’s agricultural background, Sarah invested in Agrise, a P2P lending fintech company, which aimed to bridge the information gap within the agricultural sector by connecting farmers, investors, and landowners.
Why?
For her initial investment, Sarah chose hybrid corn crops, investing 10 million IDR for a two-year period (equivalent to US$703), leading to a profitable return, coupled with insights on sowing and harvesting timelines, as well as the environmental benefits of her investment.
Eager to continue her impact-driven journey, Sarah expanded her investment portfolio with three additional spaces, investing 6 million IDR ($421) in Californian papaya crops to be cultivated in the Indonesian region of West Java.
However, this is where things started to go wrong.
When?
As 2023 progressed, Sarah’s correspondence with Agrise dwindled and then stopped, despite her best efforts.
In mid-April 2023 Sarah received a bank transfer on her hybrid corn investment, but the amount covered only 35% of her total investment, leading to a substantial loss.
Later in 2023 her concerns deepened as her Californian papaya investments reached the principal payback date, coinciding with the end of her communication from Agrise.
Where?
There were a number of P2P lending fintech companies in Indonesia who specialised in industries such as agriculture, fisheries and animal husbandry.
What next?
Sarah decided to return to impact investing after graduating and landing a position at a multinational corporation, where her substantial income allowed her to explore investment avenues.
But she had nagging questions from her past experience with Agrise: why did her investments fall short of her expectations? Where did she go wrong?
Author perspective
On the reasons for writing the case…
Aulia said: “There are many novel discoveries in impact investment that are advertised heavily to society, given that it has sustainable value and financial returns. Millennial investors, in particular, are new to having sizable stipends and cash inflows which they are often confused on where to spend. The case highlighted just that, focusing on decision making opportunities for sustainable investment.”
On the case writing challenges…
Aulia continued: “The largest challenge when writing the case was finding reliable and multiple sources for the green peer-to-peer lending business model for the consideration of the millennial investor. We wanted to make the case as relevant as possible to the readers.”
On teaching the case…
She added: “We deployed anonymous polling, just before the small group discussion for the case. This method elevated the case teaching. The students were giving responses that were outside the box and relevant to the case. Students were reading the case before the class session making it possible to have fruitful discussions on the case questions.”
On how students react to the case…
She commented: “Our energy came from the students. The students had concerns on sustainability and were aware about the existence of these green impact investment opportunities.
“However, most students hadn’t registered for peer-to-peer platforms so they hadn’t enjoyed first-hand experience of it. The case helps to shed light on the risks and rewards of green peer-to-peer lending and they are very happy to learn about this.”
On case writing tips…
Aulia concluded: “Our top tip is to have a clearly defined problem. There might be a tendency, when researching the case, to include too much information. Some of it is actually irrelevant and not needed in the case. We need to be aware of creating a direct and succinct case which is interesting to read.”
