LIWWA INC
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Liwwa Inc. (“Liwwa”) is a FinTech start-up that operates a crowdfunding platform to provide trade finance to un(der)served small businesses. Liwwa started operation in March 2015 and targets a serviceable market of ~45.5k businesses in Jordan. MSMEs benefit from an online loan application process and marketplace function, while retail investors can crowdfund ‘campaigns’ based on the credit assessment, loan structuring and pricing determined by Liwwa. Liwwa operates a hybrid model: 3 local banks and Liwwa fund campaigns alongside retail investors. Liwwa aims to scale the business in Jordan, a.o. by expanding the acquisition strategy and sales team, and looks to replicate the business in Egypt.
What is our funding objective?
FMO's USD 500,000 convertible loan, with an option to convert to equity, will be used to invest in technology, fuel growth in Jordan and replicate Liwwa in Egypt.
Why do we fund this investment?
Liwwa has an unique brand in Jordan and strong competitive advantages that allow replicating the platform in the MENA region (i.e. excellent customer experience, technology-driven loan process and Sharia compliant loan product). Furthermore, there is a clear defined client segment and proof of demand: Jordanian small businesses are un(der)served, but sophisticated enough for an automated loan process and sizable enough to scale the business. Thirdly, Liwwa has a strong management team that allows for innovation and learning, while executing on organizational development. Co-founder and CEO Ahmed Moore has built strong relations in the Jordan banking and business community. Finally, the client received early-stage investments by reputable, local VC funds with MENA footprint, which signals confidence in the Liwwa’s business model and management team.
What is the Environmental and Social categorization rationale?
Liwwa is categorized as an E&S C-risk. It has no exposure to high risk E&S sectors
More investments
| Date | Total FMO financing |
|---|---|
| 6/26/2023 | EUR 0.04 MLN |
| 6/1/2021 | USD 0.50 MLN |
| 10/13/2021 | EUR 0.01 MLN |
| 12/13/2019 | USD 1.50 MLN |
| 1/14/2020 | EUR 0.02 MLN |
| 2/27/2019 | EUR 0.02 MLN |
| 12/29/2022 | USD 0.50 MLN |
- Website customer/investment
- https://www.liwwa.com/
- Region
- Asia
- Country
- Jordan
- Sector
- Financial Institutions
- Effective date
- 2/21/2018
- End date
- 5/12/2020
- Total FMO financing
- USD 0.50 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B