Lendable MSME Fintech Credit Fund II SCSp SICAV-RAIF (FMO-64908)

Regions
  • World
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 24, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Lendable MSME Fintech Credit Fund 2
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Oct 27, 2025

Disclosed by Bank Jun 4, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, FMO invests USD 10 million through MASSIF in Class B shares (first-loss tranche) of the Fund. This investment plays a critical anchoring and catalytic role, enabling the Fund to mobilize investments from development finance institutions (DFIs) and commercial investors into more senior tranches. The investment supports a fund structure that blends public and commercial capital to expand access to credit for fintechs targeting underserved MSMEs.

The Fund will provide senior secured and unsecured loans to a diverse range of socially impactful fintechs such as MSME lenders, payment platforms, and asset-backed financiers that serve low-income and underserved populations. The Fund has strong additionality, as it supports FMO's fintech strategy by enabling investments into both early-stage and mature fintechs that may be ineligible for direct lending. It qualifies for FMO's 100% Reducing Inequalities label due to its 2X Challenge eligibility for gender impact. Furthermore, the Fund offers technical assistance and incentives to fintech borrowers to improve their ESG and customer protection standards. In addition, FMO's first-loss participation will be crucial in attracting senior DFI and commercial capital, thereby helping to scale an impactful investment platform.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Fund has been categorized as E&S Category C. Lendable has developed a strong Environmental and Social Management System (ESMS), co-developed with FMO and BIO, which is applied at the fund level. The ESMS ensures environmental and social (E&S) impacts and consumer protection principles (CPPs) are integrated throughout the investment cycle. The ESMS is managed by a dedicated ESG lead and is aligned with FMO's best practices. Inherent CPP risks are due to the nature of the Fund's projected fintech clients, which primarily serve MSMEs, including consumers (max 25%), and some operate without regulatory oversight.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

USD 10 million through MASSIF in Class B shares (first-loss tranche) of the Fund.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Lendable MSME Fintech Credit Fund 2 (“LMFCF2”) is a new debt fund managed by DynoLabs Asset Management Ltd, a wholly-owned subsidiary of Lendable Inc. which has been a long-standing partner of FMO. Lendable is an impact-focused asset manager that provides funding to fintech lenders in emerging markets. LMFCF2 is the successor to Lendable’s first MSME (micro-, small-, and medium-sized enterprise) fintech fund and will continue providing credit to fintechs operating across Africa and Asia while also adding Latin America.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

https://lendable.io/

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works