Lendable Inc, a London- and Singapore-based lending platform startup, is targeting a ground-breaking $100 million closed-ended fund focused on emerging and frontier market fintech investments, according to an announcement.
Called “Lendable MSME Fintech Credit Fund”, the fund provides credit to African and Asian fintech companies, who in turn offer fair credit facilities to MSMEs.
It has closed a $49 million investment from DFC, EMIIF (DFAT), Calvert Impact Capital, Ceniarth, BIO, FMO and FSD Africa (FSDAi). Another $20 million is on track to close in the fourth quarter and the fund is expected to hard close above $100 million in 2022.
This is a five-year blended finance closed-ended Luxembourg Reserved Alternative Investment Fund (RAIF), with FSDAi and EMIIF providing the first loss capital tranche.
The fund is Lendable’s fourth fund and with the soft close takes the Firm’s overall committed capital to over $200 million. From inception (October 2016) to 31 August 2021, Lendable has delivered an annualised net return of 14.32% to investors.
“We have had an amazing response to this Fund and have brought on board an impressive slate of leading impact investors and DFIs who back our approach,” commented Daniel Goldfarb, co-Founder of Lendable. “Through our fintech investments, we are providing essential working capital for MSMEs that enables off-grid customers to buy energy products and opens the door to innovative digital banking services to consumers. It is about making a high impact difference.”
“Emerging market fintech investment has a direct and highly important impact on regional development. Sadly, all too often, quality firms struggle to scale due to a lack of adequate, tailored capital. FMO is excited to partner with Lendable as its proposition directly addresses this issue by bringing new capital to the table combined with their strong record of delivering competitive risk-adjusted returns for investors,” said Marnix Monsfort, Director Financial Institutions, FMO.
Lendable has offices in Nairobi, London, and Singapore. Using its proprietary technology and data, Lendable directly originates, structures, underwrites, and monitors all transactions. To date, Lendable has disbursed over $180m to fintechs in over nine countries.
In February this year, Lendable invested $50 million in Indonesian P2P lending firm Amartha to improve access to finance for women micro-entrepreneurs in the country.
Last year, Jakarta-based P2P lending firm KoinWorks had raised an additional $10 million (Rp 149 Billion) from Lendable.