Fasanara Capital and the International Finance Corporation (IFC), a member of the World Bank Group, have announced plans to launch a new lending strategy aimed at expanding access to finance for micro, small, and medium-sized enterprises (MSMEs) in emerging markets. The initiative seeks to provide affordable and flexible financing to small businesses, particularly those led or owned by women, which often face significant barriers to accessing capital needed for growth and expansion.
MSMEs play a crucial role in economic development and job creation across emerging markets. However, many of these businesses struggle to secure financing, contributing to a global funding gap estimated at $5.7 trillion. Women entrepreneurs are especially affected by this shortage. To address this challenge, the new strategy will support fintech lenders that provide faster and more efficient financing alternatives compared to traditional banking systems.
Through the partnership, IFC and Fasanara aim to increase the flow of capital to fintech companies that lend to MSMEs. By investing in trade receivables and digital invoices acquired by fintech lenders, the initiative will enable these financial technology firms to expand their lending capacity and reach more small businesses. This approach is expected to help MSMEs grow their operations, improve financial inclusion, and create new employment opportunities.
Leaders from both organizations highlighted the importance of combining technology-driven credit solutions with development expertise. Fasanara’s technology-enabled credit capabilities, together with IFC’s global development experience, are intended to create practical financing solutions that broaden access to credit and strengthen economic participation, particularly for women-led enterprises.
The strategy represents one of the first fintech-enabled private credit initiatives focused specifically on MSME lending in emerging markets. By demonstrating that such loans can be a viable and scalable asset class for institutional investors, the partnership is expected to attract additional private investment, improve the efficiency and affordability of MSME financing, and contribute to sustainable economic growth and job creation across developing economies.
Fasanara Capital is a global fintech investment platform specializing in technology-enabled credit strategies, operating across more than 60 countries and providing diversified private credit opportunities to institutional investors. The International Finance Corporation, the private sector arm of the World Bank Group, works in over 100 countries to promote private sector development and mobilize investment for sustainable economic progress.
