Lendable Seeks $100M for Fintech Funding in Emerging Markets

Lendable Seeks $100 Million for Fintech Investments in Africa and Asia

Fintech financier Lendable, specializing in emerging markets, is currently aiming to secure a $100 million fund. This capital will be directed towards investments in fintech companies operating within Africa and Asia, as communicated in a recent statement.

Previous Funding Plans

Earlier in March, the firm had initially indicated plans to raise between $120 million and $180 million. The intended purpose of this earlier funding round was to facilitate new loans to fintechs. These loans would then empower them to offer crucial financial services.

These services include credit provision, asset financing, payment processing, and remittance solutions to both individual consumers and businesses throughout emerging markets. It remains uncertain whether the newly announced fund represents a continuation of those earlier discussions.

The MSME Fintech Credit Fund

Lendable has designated this current fundraising effort as its fourth fund. Officially named the MSME Fintech Credit Fund, its primary objective is to extend credit lines to fintech companies based in Africa and Asia.

This credit will, in turn, enable these companies to broaden their offerings of credit facilities and diverse financial services to over 150,000 small businesses.

Current Investment and Future Expectations

To date, Lendable has successfully secured $49 million in commitments from impact investors. These include organizations such as DFC, EMIIF (DFAT), Calvert Impact Capital, Ceniarth, BIO, FMO, and FSD Africa.

The firm anticipates an additional $20 million in funding to be finalized during the fourth quarter of the current year, with a final closing scheduled for 2022.

Overall Capital and Pipeline

This initial closing brings Lendable’s total committed capital to over $200 million. Since its inception in 2016, the lender has also managed a substantial pipeline exceeding $400 million.

Furthermore, Lendable has already disbursed $180 million in funding during this period.

Company Background and Performance

Founded by Daniel Goldfarb and Dylan Fried, Lendable has facilitated the provision of over 1.4 million loans to consumers and small businesses.

This includes more than 80,000 productive asset loans and over 105,000 solar home systems. Investors have benefited from an annualized net return of 14.32%.

Statements from Leadership

Goldfarb stated, “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.”

He further elaborated, “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.”

Portfolio and Lending Terms

Lendable has extended debt financing to a diverse portfolio of fintechs across nine emerging markets. Notable companies include Tugende, Carbon, Uploan, KoinWorks, Planet42, FairMoney, Trella, Payjoy, Solar Panda and MFS Africa.

The firm’s debt facilities typically range from $2 million to $15 million, with repayment terms spanning three to four years. A company spokesperson reported a remarkably low default rate of approximately 0.01% in a recent interview with TechCrunch.