Catalytic Capital | October 13, 2021

Lendable taps European alternative structure for $100 million emerging markets fund

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 13 — Lendable provides debt financing for fintechs that help mostly low-income and largely women borrowers increase their incomes or reduce their costs (see, “How Lendable parses risks and returns to mobilize capital for inclusive fintech in emerging markets).

The lender is using a European fund structure called a Reserved Alternative Investment Fund to raise the Lendable MSME Fintech Credit Fund to invest in African and Asian fintechs in emerging and frontier markets.

Lendable, which recently backed Singapore’s Finclusion Group, says it is aiming to create access to fair credit and financial services for over 150,000 underserved small and medium-sized businesses.

The firm already has a “targeted pipeline of investment opportunities” that will expand its footprint into new markets, according to CEO Chris Wehbe

Catalytic capital

The Emerging Markets Impact Investment Fund and FSD Africa provided first loss capital for the five-year blended finance fund.

Lendable has received $50 million in commitments, including from the U.S. International Development Finance Corp., Calvert Impact Capital, Ceniarth, FMO and the Belgian Investment Company for Developing Countries.

The Fintech Credit Fund, said DFC’s Algene Sajery, “will help catalyze the next wave of commercial investment into emerging market fintech companies.”