Lendable has raised $10 million to its latest emerging-markets credit vehicle, from Dutch development bank FMO to expand lending to fintechs serving small businesses across Africa, Asia, and Latin America.
The commitment, made through FMO’s MASSIF fund, will be invested in the first-loss tranche of the Lendable MSME Fintech Credit Fund 2 (LMFCF2), a $ debt fund managed by DynoLabs Asset Management, a wholly owned subsidiary of Lendable Inc. The structure is designed to attract capital from development finance institutions and commercial investors into more senior tranches.
The new fund follows Lendable’s inaugural MSME fintech fund and will provide secured and unsecured loans to fintech lenders, payments platforms, and asset-backed financiers that target underserved entrepreneurs and low-income populations.
“This investment plays a catalytic role by mobilizing both public and private investors into a blended structure that strengthens access to finance for fintechs serving MSMEs,” FMO said in a disclosure.
The fund has been given FMO’s 100% Reducing Inequalities label and is eligible under the 2X Challenge for gender impact. Beyond capital, it also offers fintech borrowers technical assistance and incentives to enhance environmental, social, and governance (ESG) performance and consumer-protection standards.
FMO’s first-loss participation is expected to be crucial in de-risking the platform for other financiers. Lendable, which has worked with FMO since its early years, specializes in providing credit to fintechs in emerging markets.
The fund has been classified as environmental and social Category C, reflecting a low-risk profile. Lendable applies a management system co-developed with FMO and Belgian DFI BIO, with a dedicated ESG lead overseeing compliance. Consumer protection remains a focus given some borrowers operate in lightly regulated environments.