Lendable MSME Fintech Credit Fund 2

Equity : July 2025

BIO has committed USD 10M in equity to LMFCF2, a private credit fund focused on providing loans to fintech companies that finance MSMEs and individuals in emerging markets.

Amount

$ 10,000,000.00

Type of investment

Equity

Development impacts

Local economic growth
Private sector consolidation/innovation

Beneficiary locations

Africa:

Asia:

Latin America and Caribbean:

Investment field

Financial Institutions

Activity

KK.64.302 FI Fund

Organisation

Lendable MSME Fintech Credit Fund 2

Website

https://lendable.io/

The investment is fully aligned with BIO’s Investment Strategy and contributes to several of its 2024–2028 Strategic Impact Targets. By financing fintechs that serve MSMEs and individuals in low‑ to middle‑income countries, the fund strengthens financial inclusion and supports job creation. Gender equity is another priority: the fund will encourage improved gender practices by offering technical assistance and interest rate incentives tied to gender‑related targets. In addition, the initiative has a strong digital dimension, backing fintech innovations that expand access to affordable, high‑quality financial services for underbanked populations.

The project addresses a significant gap in fintech debt financing. While LMFCF1, the predecessor fund, successfully demonstrated the viability of lending to fintechs in emerging markets, the availability of long-term debt financing for these companies remains well below market demand. BIO’s investment in the equity tranche has also played a catalytic role in mobilizing private capital, helping to attract commercial investors to the fund’s more senior tranches.

Development impacts

Local economic growth
The Fund aims to finance Fintechs that on-lend to MSMEs in the local economy (digital MSME lenders, asset financers, embedded finance platforms), thereby support job creation and local economic growth.
Private sector consolidation/innovation
By demonstrating financial viability of debt to fintechs in emerging market, contributing to their institutionalization through the tech and data insight shared with the investees and enhancing sustainable E&S and gender practices, Lendable will also contribute to strengthening domestic financial markets and foster the channeling of more commercial capital into the sector that remains underserved.

E&S Review

BIO has actively contributed to strengthening the fund manager’s environmental and social management framework, including improvements to its environmental and social management system (ESMS) and related documentation and procedures.

Environmental and Social (E&S) classification of the project: C