The Dutch development finance institution, FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.), has officially committed a $10 million investment to the Lendable MSME Fintech Credit Fund 2 (LMFCF2). This new investment vehicle is a debt fund managed by DynoLabs Asset Management.
DynoLabs Asset Management operates as a wholly-owned subsidiary of Lendable Inc., an established and key partner for FMO. Lendable has built a reputation as a specialized impact asset manager, focusing on channeling capital to financial technology (fintech) companies in emerging and frontier markets. The core mission of Lendable is to provide commercial debt to these fintech lenders, enabling them to scale their operations and deepen their outreach.
The newly established fund, LMFCF2, is the direct successor to Lendable’s first fintech fund, signaling a continuation and expansion of a successful strategy. The second fund will build upon the work of its predecessor by continuing to provide crucial credit facilities to fintech companies across the African and Asian continents. In a significant strategic expansion, LMFCF2 will also begin operations in Latin America, opening a new geographic frontier for its impact-driven financing.
The fund’s investment strategy is centered on providing senior secured and unsecured loans. This flexible approach allows it to cater to the varying needs of a diverse portfolio of fintech companies. The target recipients are fintechs with a clear and demonstrable social impact, specifically those that promote financial inclusion and economic development. These include:
- MSME Lenders: Fintechs that offer credit to Micro, Small, and Medium Enterprises, which are often considered the backbone of emerging economies but frequently struggle to access traditional bank financing.
- Payment Platforms: Companies that provide digital payment and transaction services, enabling easier and more affordable access to the formal economy for individuals and small businesses.
- Asset-Backed Financiers: Fintechs that enable individuals and businesses to acquire productive assets, such as solar home systems, vehicles for ride-sharing or delivery services, or equipment for small-scale agriculture.
Ultimately, the capital provided by FMO and other investors in the LMFCF2 is designed to flow through these fintech intermediaries to reach the end-users who need it most: low-income individuals, underserved communities, and small business owners who have historically been excluded from mainstream financial services.
