LIWWA INC.
Status: Approved 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 that provides trade and working capital finance to un(der)served small businesses in Jordan and recently Egypt. It deploys its technology across operations, credit underwriting, an online marketplace for loans (peer-to-peer lending). MSMEs benefit from quality customer service and the speed of Liwwa's lending process, while retail investors can crowdfund ‘campaigns’ based on the credit assessment, loan structuring and pricing determined by Liwwa. The Company operates a hybrid funding model: partner banks and Liwwa fund campaigns alongside retail investors on the platform (Liwwa.com).
What is our funding objective?
Liwwa started operation in March 2015 with the target to serve a market of 100k businesses in Jordan. Recently the Company began to replicate its model in Egypt with an addressable market of around 2mln MSME’s and continues to scale up in Jordan by further digitalizing and expanding its borrower acquisition strategy. FMO initially invested with a convertible note in 2018 and later participated in Liwwa’s Series A-1 round in 2019. Today, FMO has the intention to provide an additional USD 500k in financing from the FMO Ventures Program, to strengthen the Company's solvency position, allow for further investment in technology and enable Liwwa to scale in Egypt.
Why do we fund this investment?
Liwwa targets a clearly defined client segment and has established a unique brand in Jordan, by offering a Sharia-compliant loan product, among other features. Its competitive advantages should allow the platform to be replicated in the MENA region. The company has an opportunity to scale operations in Egypt and across MENA further addressing the challenge of financing MSME’s and creating jobs in emerging economies.
What is the Environmental and Social categorization rationale?
Liwwa is categorized as an E&S B-risk, which is based on the E&S risk profile of the underlying transaction. It has no exposure to high risk E&S sectors.
More investments
| Date | Total FMO financing |
|---|---|
| 6/26/2023 | EUR 0.04 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 |
| 5/12/2020 | USD 0.50 MLN |
| 12/29/2022 | USD 0.50 MLN |
- Website customer/investment
- https://www.liwwa.com/
- Region
- Europe & Central Asia
- Country
- Jordan
- Sector
- Financial Institutions
- Effective date
- 6/1/2021
- Total FMO financing
- USD 0.50 MLN
- Funding
- Ventures Program Africa EurNb
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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