Africa-Press – Eswatini. The International Finance Corporation (IFC), the World Bank Group’s private-sector arm, has pledged up to $45.6 million in debt funding to the Lendable MSME Fintech Credit Fund II (LMFCF II), managed by London-based asset manager Lendable Inc. The funding is intended to boost credit access for micro, small, and medium enterprises (MSMEs), with a focus on women-led businesses across Africa, Asia, and Latin America through fintech lenders.The funding may be supplemented by a $4.4 million co-investment from the Women’s Entrepreneur Finance Initiative ( We-Fi) and will back digital lenders targeting underserved communities in emerging markets. The seven-year fund will deploy capital over five years, with a two-year repayment phase to follow.
Founded in 2014, Lendable focuses on supplying debt financing to fintechs in developing markets, using data-driven underwriting to manage risk. By December 2024, the firm had deployed $576 million across 18 countries, maintaining a low default rate of 2.3% and achieving a 13.15% annualized net internal rate of return (IRR) since its inception.
Lendable’s proprietary platform, Maestro, connects with fintechs’ banking and customer management systems to enable real-time loan tracking. This technology has supported the firm in funding fast-growing African fintechs like Moove Africa (co-founded by Victoria van Lennep), vehicle financing service Planet42, and credit providers OneFi and Finclusion Group.
Blended Finance Model Draws Global Investor Interest
The new fund builds on Lendable’s successful 2023 close of its first MSME Fintech Credit Fund, which raised $110 million—surpassing its $100 million goal. That fund attracted backing from development finance institutions like the U.S. International Development Finance Corporation (DFC), Japan’s JICA , and the Dutch development bank FMO, as well as commercial investors.
The IFC’s investment highlights the rising importance of fintechs in closing credit gaps in emerging markets. The World Bank reports that 1.4 billion adults remain unbanked, while MSMEs face a global financing gap of $5.2 trillion. Digital lenders, using alternative credit scoring and mobile money systems, are increasingly viewed as a viable solution.
Still, challenges persist. Higher interest rates and currency fluctuations in Africa have pressured some digital lenders, and regulatory oversight has grown tighter in countries such as Nigeria and Kenya. Lendable’s data-driven strategy is designed to manage these risks while generating value for both investors and borrowers.
With fintech adoption accelerating across the Global South, Lendable’s latest fund reflects sustained confidence in the sector’s promise—and in blended finance as a key tool for unlocking its potential.
Lendable is a tech-focused asset manager specializing in fintech debt financing in emerging markets. Based in London with offices in Nairobi and Singapore, the firm has deployed over $340 million across 14 countries, with support from backers such as USAID, the European Investment Bank, and other development finance institutions.
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