Fintech platform Fasanara Capital and the World Bank’s private sector arm, the International Finance Corporation (IFC), have launched a lending strategy aimed at supporting micro, small and medium-sized enterprises (MSMEs) in emerging markets.
The lending partnership, one of the first private credit strategies to focus on financing MSMEs in emerging markets, will channel capital to these enterprises, particularly businesses led or owned by women, by supporting fintech lenders that specialise in serving them.
Under the partnership, both firms will invest in trade receivables and digital invoices acquired by fintech companies, enabling them to scale their lending and expand operations.
Read more: Fasanara Capital partners with Bitget to advance tokenised finance
“By combining Fasanara’s technology-enabled credit capabilities with IFC’s development expertise, this initiative provides an important opportunity to explore practical solutions that can broaden access to finance and support sustainable economic participation,” said Francesco Filia, chief executive of Fasanara.
According to Fasanara and the IFC, small businesses globally face an estimated $5.7tn (£4.2tn) financing gap, with women entrepreneurs the most affected. While fintech lenders are attempting to address this shortfall, those operating in emerging markets lack sufficient capital.
Read more: AllianzGI rolls out $1bn climate-focused EM credit fund
London-based Fasanara specialises in technology-enabled credit strategies, while the IFC is a global development institution focused on the private sector in emerging markets and has committed $71.7bn to the field.
“Expanding access to fast, flexible financing for MSMEs, including women-owned businesses, is one of the most effective ways to support job creation in emerging markets,” said Mohamed Gouled, IFC’s vice president for products and clients.
Read more: L&G enters $1bn strategic partnership with Enosis Capital
