Kenyan-based FintTech, lendable has received a convertible grant from Dutch Development Bank FMO. The grant money will be used to fund loans from latter’s alternative lender clients across Africa to small and micro enterprises and low-income consumer borrowers.
Lendable was established in 2014. Since then it has provided structured finance facilities to seven rapidly growing alternative lenders across African markets, including off-grid energy companies, small and medium-sized enterprise (SME) lenders and asset finance companies.
The USD 450,000 convertible grant is being provided by the Dutch government’s MASSIF fund, managed by FMO. Its aim is to reach targeted end-beneficiaries by financing local financial intermediaries and institutions that can contribute to their development. Lendable’s platform allows for direct data integration with alternative lenders, including loan portfolio data analysis and cash flow predictions.
Daniel Goldfarb, CEO Lendable, said “By working with FMO we can scale-up the volume of capital reaching SMEs and consumers in our markets as well as to support our partners in implementing the Responsible Finance Guidelines,” he said, “As we scale, finding parties like FMO that are willing to invest alongside Lendable to de-risk commercial investment is key to our success.”