Lendable Secures $10 Million Boost for MSME Fintech Lending, Targeting Africa and Beyond
Lendable, a prominent fintech lender, has successfully raised $10 million for its second Micro, Small, and Medium Enterprise (MSME) fintech credit fund. This significant investment comes from the Dutch development bank, FMO, and is earmarked for expanding Lendable’s lending operations to fintech companies serving small businesses across Africa, Asia, and Latin America. This influx of capital signifies a strong vote of confidence in Lendable’s model and the potential of MSME-focused fintech within these emerging markets.
Expanding Financial Inclusion: The LMFCF2 Fund and Its Impact
The investment from FMO is channeled through its MASSIF fund and will be strategically deployed in the first-loss tranche of the Lendable MSME Fintech Credit Fund 2 (LMFCF2). DynoLabs Asset Management, a fully-owned subsidiary of Lendable Inc., manages this $ debt fund. The fund’s structure aims to attract further capital from both development finance institutions and commercial investors, who will invest in more senior tranches. This approach fosters a blended finance structure, increasing access to financial support for fintechs working towards financial inclusion. LMFCF2 follows the success of Lendable’s initial MSME fintech fund and will offer both secured and unsecured loans to fintech lenders, payments platforms, and asset-backed financiers. The focus will remain on supporting those targeting underserved entrepreneurs and low-income populations, a critical area for economic growth, particularly in the African tech landscape.
The funding will enhance financial inclusion in African tech.
The investment will boost African MSME fintech.
Conclusion
This $10 million investment in LMFCF2 underscores the growing recognition of the vital role that fintech plays in providing access to finance for MSMEs in emerging markets. Lendable’s approach, supported by institutions like FMO, has the potential to unlock significant economic opportunities for small businesses across Africa and beyond. This funding round is a testament to Lendable’s success and signals a positive trajectory for the future of MSME-focused fintech lending.
Keywords
Related Keywords: Lendable, MSME Fintech, Credit Fund, 10M Funding, TechMoran, Fintech Investment, Small Business Loans, Lendable Funding, Fintech News, MSME Finance
