Who is our client
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.
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 we fund this project
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.
Environmental and social rationale
Liwwa is categorized as an E&S C-risk. It has no exposure to high risk E&S sectors
|Date||Total FMO financing|
|6/1/2021||USD 0.50 MLN|
|6/29/2020||EUR 0.01 MLN|
|12/13/2019||USD 1.50 MLN|
|7/9/2019||EUR 0.02 MLN|
|8/29/2018||EUR 0.02 MLN|
- Website client
- Financial Institutions
- Signing date
- Total FMO financing
- USD 0.50 MLN
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)