The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has committed up to $45.6 million in debt financing to the Lendable MSME Fintech Credit Fund II (LMFCF II), a vehicle managed by London-based asset manager Lendable Inc. The investment aims to expand access to credit for micro, small, and medium enterprises (MSMEs) — particularly women-owned businesses — across Africa, Asia, and Latin America through fintech lenders.
The funding, which may include an additional $4.4 million co-investment from the Women’s Entrepreneur Finance Initiative (We-Fi), will support digital lenders that serve underserved populations in emerging markets. The seven-year fund will allocate capital over five years, followed by a two-year repayment period.
Lendable, founded in 2014, specializes in providing debt financing to fintechs in developing economies, leveraging data-driven underwriting to mitigate risk. As of December 2024, the firm has deployed $576 million across 18 countries, maintaining a low default rate of just 2.3%, with an annualized net internal rate of return (IRR) of 13.15% since inception.
The firm’s proprietary platform, Maestro, integrates with fintechs’ banking and customer management systems, enabling real-time loan monitoring. This technology has helped Lendable back high-growth African fintechs such as mobility lender Moove Africa (co-founded by Victoria van Lennep), vehicle financing platform Planet42, and credit providers OneFi and Finclusion Group.
Blended Finance Model Attracts Global Investors
The new fund follows Lendable’s 2023 close of its first MSME Fintech Credit Fund at $110 million, exceeding its $100 million target. That vehicle drew support from development finance institutions (DFIs) such as the U.S. International Development Finance Corporation (DFC), Japan’s JICA, and Dutch development bank FMO, alongside commercial investors.
The IFC’s investment underscores the growing role of fintechs in bridging credit gaps in emerging markets. According to the World Bank, 1.4 billion adults remain unbanked, with MSMEs facing a $5.2 trillion financing shortfall globally. Digital lenders, leveraging alternative credit scoring and mobile money ecosystems, are increasingly seen as a solution.
However, risks remain. Rising interest rates and currency volatility in Africa have strained some digital lenders, while regulatory scrutiny has intensified in markets like Nigeria and Kenya. Lendable’s data-centric approach aims to navigate these challenges while delivering returns for investors and borrowers alike.
As fintech adoption grows across the Global South, Lendable’s latest fund signals continued confidence in the sector’s potential — and the role of blended finance in unlocking it.
Lendable is a technology-driven asset manager focused on fintech debt financing in emerging markets. Headquartered in London, with offices in Nairobi and Singapore, the firm has disbursed over $340 million across 14 countries. Its previous backers include USAID, the European Investment Bank, and other DFIs.
