Lendable, a London-based investment firm that seeks to deepen its footprint in Asia, has announced the final close of its second MSME fintech credit fund at $255 million, exceeding its original target.
The Lendable MSME Fintech Credit Fund II (LMFCF II) backs financial services companies in emerging markets with asset-backed capital, targeting businesses using technology and data to expand access to finance for underserved populations.
The predecessor fund closed at $100 million in 2023.
The final close of Fund II attracted commitments from existing investors and new institutional backers, including insurance group AXA XL and African bank Absa, per the announcement. FinDev Canada was an investor in the fund’s first close.
Absa’s investment marks Lendable’s first African bank investor in LMFCF II and adds domestic African capital to the fund’s investor base, Lendable said in a statement.
The fund’s senior tranche carries an investment-grade rating, which was subsequently upgraded after the initial deployment of the portfolio, according to Lendable. The firm attributed the upgrade to the fund’s capital structure and credit performance.
The investment-grade rating is intended to help attract institutional capital to emerging-market assets, where blended-finance vehicles have sought to combine commercial funding with structures designed to mitigate risk for investors.
Lendable is also finalising a $1.6 million technical assistance facility funded by some LMFCF II investors.
The facility will provide support to companies financed by the fund and help strengthen their impact and sustainability, as well as Lendable’s internal investment processes.
“We set out to prove that high-impact asset classes could meet institutional standards without compromise,” Lendable CEO Chris Wehbe said. “An investment-grade rated senior tranche and an oversubscribed final close are the clearest evidence yet that we’re getting there, and that investors are ready to back this strategy at scale,” he added.
LMFCF II is part of Lendable’s broader strategy of investing in technology-enabled financial services and other businesses focused on inclusive and sustainable growth across developed and emerging markets.
Lendable currently has investment teams in London, Nairobi, Singapore, Johannesburg, and Latin America, and has exposure across Asia, including Indonesia, the Philippines, Thailand, Mongolia and Bangladesh.
In Asia, it has so far provided debt to Philippines-based proptech startup Lhoopa; Indonesian P2P lending platform Amartha; auto fintech firm Moladin, SME lending platform Validus; Bangladesh-based full-stack B2B commerce platform ShopUp; and the Mongolion fintech LendMN, among others.
