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
The customer is Liwwa, a FinTech lender that offers Sharia-compliant loans of USD 30-70k to un(der)served SMEs in Jordan and Egypt for working capital, fixed assets, business expansion and trade goods. The loan ticket sizes have evolved with majority of loan ticket sizes between USD 50k-150k in 2022. The company also operates the Liwwa Marketplace, a peer-to-peer platform that enables retail investors to finance (invest in) Liwwa loans.
What is our funding objective?
The funding objective is to support Liwwa Inc with expertise to evaluate and strengthen financial accounting particularly considering the company’s peer-to-peer platform: explore potential options regarding the future operating model of the Marketplace and review treatment of shareholder loans as channel for retail investor funds raised via the Marketplace. A second objective is to complement Liwwa’s Series B financing round by providing assistance in the form of a transaction advisor that would help alleviate management bandwidth for the fundraise and benefit shareholders (incl. FMO).
Why do we fund this investment?
This project is funded through the Investee Strengthening component of the FMO Ventures Program Technical Assistance Facility, co-funded by the Dutch Government and European Commission. This component seeks to enable the Ventures Program investees to meet relevant standards, improve company performance efficiency and revenue, and increase the impact of their business. This project supports these objectives by significantly contributing to the investee’s operational effectiveness and helps them in securing funding which helps in realizing the company’s impact objectives going forward.
What is the Environmental and Social categorization rationale?
N/A
More investments
| Date | Total FMO financing |
|---|---|
| 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 |
| 5/12/2020 | USD 0.50 MLN |
| 12/29/2022 | USD 0.50 MLN |
- Website customer/investment
- https://www.liwwa.com/
- Region
- Asia
- Country
- Jordan
- Sector
- Financial Institutions
- Publication date
- 7/11/2023
- Effective date
- 6/26/2023
- Total FMO financing
- EUR 0.04 MLN
- Funding
- FMO NV
-
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