Project detail - LIWWA INC.

LIWWA INC.

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Who is our client

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).

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 we fund this project

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.

Environmental and social 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
6/29/2020 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
2/21/2018 USD 0.50 MLN
Website client
https://www.liwwa.com/
Region
Europe & Central Asia
Country
Jordan
Sector
Financial Institutions
Signing date
6/1/2021
Total FMO financing
USD 0.50 MLN
Fund
VC program
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