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Lendable MSME Fintech Credit Fund

Overview

About

Lendable is a fintech which provides finance to alternative digital financial service providers in emerging and frontier markets. The platform leverages data science capabilities to finance the new generation of tech-enabled financial service providers who use digital technology to provide financial solutions to consumers, such as lending and remittances.

Investment Details

Name

Lendable MSME Fintech Credit Fund

Tagline

Technology driven private credit for alternative digital financial services in emerging and frontier markets

Sector

Digital Economy

Location

Egypt, Ghana, Kenya, South Africa

In portfolio since

2021

Our role

  • Into the LMFCF catalytic tranche scaled Lendable’s existing digital lending product addressing a gap in debt finance to digital alternative financial service providers. This catalytic role supported Lendable to raise capital from DFIs and other strategic investors. At the time FSDAi committed its capital, it was joined by DFC, Calvert Investment Management, Ceniarth, BIO, FMO, and the Emerging Markets Impact Investment Fund trust for a total raise of USD 45.75m. The Fund is expected to close at USD 110m by December 2022 against a target of USD 100m.
  • The grant provided by FSDAi supported the capacity development of LMFCF clients in client protection practices, cyber security capabilities, and foreign currency exposure
 

Our investment

Committed capital:£3.66 million

Instrument: Equity

*Junior Equity £3.36mn Grant of £0.3mn

Purpose and target market

FSDAi’s investment seeks to:
  • Increase debt finance to alternative digital finance innovators providing solutions to drive Africa’s digital economy and sustained inclusive green growth.
  • And in so doing, to promote responsible financing practices and strengthen performance of digital finance.
  • Promote the growth of a specialist innovative fund manager using data driven model to increase capital available to individuals and MSMEs through emerging fintech companies

Impact to date

52% Total funding deployed in Africa

99,703 Number of MSMEs with improved access to credit

16 Fintech Companies benefitting from LMFCF specializing in MSME credit, payments, asset lending and consumer credit

$47.7m Amount Disbursed

 

Investee contacts

The Promenade, 3rd Floor, General Mathenge Drive, c/o Nairobi Garage, Nairobi, Kenya

africainvestments@lendable.io

FSD Africa contact

Riverside Green Suites (Palm Suite), Riverside Drive, Nairobi
FSDAi-info@fsdafrica.org

Updated: October, 2022