Global fintech firm Fasanara Capital and the International Finance Corporation (IFC), a member of the World Bank Group, have announced plans to create a pioneering lending strategy aimed at helping micro, small, and medium-sized enterprises (MSMEs) in emerging markets access the capital they need to grow, especially businesses led or owned by women.
The duo said in a statement on Monday that the initiative will channel more affordable, flexible financing to MSMEs by supporting fintech lenders that serve these businesses.
It is noted that MSMEs are a key driver of economic growth and job creation in emerging markets, yet many struggle to access financing.
Globally, small businesses face an estimated $5.7 trillion financing gap – with women entrepreneurs most affected.
Fintech lenders have become an increasingly important source of capital for MSMEs, providing a quick and efficient alternative to traditional bank loans.
However, many fintechs in emerging markets lack sufficient funding to meet growing demand.
Drawing on Fasanara’s technology-enabled credit capabilities, IFC and Fasanara aim to increase the flow of affordable and efficient financing to MSMEs, particularly women-led businesses, by investing in trade receivables and digital invoices acquired by fintech companies.
This approach will enable fintechs to scale their lending, reach a larger number of small businesses, helping them to expand operations and create more jobs.
“We are pleased to move forward with this initiative alongside IFC. MSMEs, and in particular women-led MSMEs, continue to face well-recognized financing constraints across emerging markets,
“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, Fasanara Capital Chief Executive Officer.
Mohamed Gouled, IFC’s Vice President for Products and Clients, added that 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.
“By leveraging Fasanara’s tech-driven approach to financing MSMEs, this project will deliver credit where it is needed most, while strengthening and supporting digital ecosystems in local economies,” he added.
According to the statement, this innovative and scalable strategy is one of the first fintech-enabled private credit strategies to focus on lending to MSMEs in emerging markets.
It builds on Fasanara’s track record in delivering diversified private credit exposures for institutional investors.
By demonstrating that these types of loans can represent a viable and investable asset class, the partnership is expected to attract additional private investment, improve the efficiency and affordability of MSME financing, and support long-term economic growth and job creation.
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