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. 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. liwwa operates a hybrid funding model: 5 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 and targets a serviceable market of ~45.5k businesses in Jordan. The company aims to scale up, amongst others by further digitalization and expansion of the borrower acquisition strategy. FMO will provide equity financing from the MASSIF fund to strengthen the company's solvency positions, allows for further investment in technology and enable liwwa to replicate the business in Egypt.
Why do we fund this investment?
liwwa has a unique brand in Jordan. Competitive advantages should allow the platform to replicate in the MENA region. liwwa targets a clearly defined client segment and gained traction in Jordan, amongst others by offering a Sharia-compliant loan product. The company has a strong management team that allows for innovation and learning, while executing on organizational development. Finally, the company received early-stage investments by reputable, local VC funds with MENA footprint. The company has an opportunity to scale operations across MENA further addressing the challenge of creating jobs in emerging economies.
What is the Environmental and Social categorization rationale?
Liwwa is categorized as an E&S B-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 |
| 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
- Publication date
- 8/9/2019
- Effective date
- 12/13/2019
- Total FMO financing
- USD 1.50 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