FinDev Canada has announced a significant USD 15 million loan to the Lendable MSME Fintech Credit Fund II, a global debt fund targeting USD 250 million. This investment is designed to enhance financial inclusion for underserved communities across Latin America, Africa, and Southeast Asia. The partnership aims to channel crucial capital to fintech companies that support micro, small, and medium-sized enterprises (MSMEs), particularly those owned by women.
Innovating Finance for Underserved Enterprises
Micro, small, and medium-sized enterprises are vital engines of economic growth in emerging markets, yet they consistently struggle to secure affordable credit through traditional channels. This financing gap hinders their potential for expansion, job creation, and overall contribution to local economies. The Lendable fund directly confronts this challenge by providing an alternative and accessible source of capital tailored to their unique needs.
The fund leverages advanced data integration technology to revolutionize credit risk assessment for fintech lenders. By monitoring borrower activity in real-time, it enables more precise portfolio management and efficient allocation of capital to deserving enterprises. This tech-driven approach not only de-risks investments but also empowers fintech partners with capacity-building tools and data expertise to scale their operations effectively.
A Strategic Alliance for Global Prosperity
FinDev Canada's USD 15 million commitment is a cornerstone of the fund's strategy, bolstering its capacity to build a diversified loan portfolio. A notable portion of this investment, USD 7 million, originates from the 2X Canada facility, a blended finance initiative funded by the Canadian government. This specific allocation underscores a strong national commitment to leveraging finance for gender-focused development and economic resilience in global markets.
Leaders from both organizations have expressed strong optimism about the collaboration's potential for transformative impact. Lori Kerr, CEO of FinDev Canada, highlighted the investment as a reflection of Canada's dedication to fostering prosperity and financial innovation. Chris Wehbé, CEO of Lendable, echoed this sentiment, emphasizing the shared belief that technology and credit access are powerful tools for expanding economic opportunity for historically excluded populations.
Fostering Gender Equality and Sustainable Growth
A core objective of the LMFCF II is the active promotion of gender equality throughout its investment portfolio. The fund is committed to ensuring meaningful representation of women in leadership and employment within its partner fintechs. It will also guide these companies in conducting gender assessments and setting ambitious, 2X-aligned targets to improve their gender practices systematically.
Building on the proven success of its predecessor, which supported an estimated 85,000 jobs, the new fund aims to amplify its economic impact. By providing fintechs with crucial capital and technical assistance, LMFCF II will empower MSMEs to create thousands of new jobs and income-generating opportunities. This focus on sustainable growth demonstrates a clear pathway from innovative finance to tangible community-level benefits and long-term prosperity.
This strategic investment by FinDev Canada into Lendable's fund marks a significant step forward in harnessing financial technology for global development. The partnership is poised to unlock substantial economic opportunities for MSMEs, advance gender equality, and build more resilient economies across three continents. It serves as a powerful example of how targeted, innovative financing can create lasting and inclusive impact in emerging markets worldwide.