IFC, Fasanara Capital Launch Fintech Strategy for MSMEs

Mohamed Gouled, IFC’s Vice President for Products and Clients, highlighted the employment impact of expanding MSME finance.

Fasanara Capital and the International Finance Corporation (IFC) have announced plans to launch a pioneering private credit strategy aimed at narrowing the vast financing gap faced by micro, small and medium-sized enterprises (MSMEs) in emerging markets — with a particular focus on women-led businesses.

The initiative will deploy affordable, flexible capital to MSMEs by backing fintech lenders that specialise in serving smaller firms often overlooked by traditional banks.

Tackling a $5.7 Trillion Financing Gap

Globally, small businesses face an estimated $5.7 trillion financing gap, with women entrepreneurs disproportionately affected by limited access to credit.

MSMEs are widely recognised as a primary driver of job creation and economic growth in developing economies. Yet in many markets, conventional banking systems struggle to assess or serve smaller borrowers efficiently.

Fintech lenders have emerged as a critical alternative, offering faster, more data-driven credit decisions. However, many fintechs themselves face funding constraints that limit their ability to scale.

Unlocking Capital Through Digital Assets

The new strategy will focus on investing in trade receivables and digital invoices acquired by fintech companies — enabling them to expand lending capacity and reach more MSMEs.

By combining Fasanara’s technology-enabled credit expertise with IFC’s development finance mandate, the partnership aims to:

• Increase affordable financing for MSMEs

• Expand credit access for women-led enterprises

• Strengthen local digital financial ecosystems

• Mobilise additional private capital into emerging markets

Francesco Filia, CEO of Fasanara Capital, said the partnership seeks practical solutions to long-standing credit constraints.

“MSMEs, and in particular women-led MSMEs, continue to face well-recognised financing constraints across emerging markets,” Filia said. “By combining Fasanara’s technology-enabled credit capabilities with IFC’s development expertise, this initiative provides an important opportunity to broaden access to finance and support sustainable economic participation.”

Supporting Jobs and Digital Ecosystems

Mohamed Gouled, IFC’s Vice President for Products and Clients, highlighted the employment impact of expanding MSME finance.

“Expanding access to fast, flexible financing for MSMEs — including women-owned businesses — is one of the most effective ways to support job creation in emerging markets,” Gouled said. “This project will deliver credit where it is needed most, while strengthening digital ecosystems in local economies.”

A First-of-Its-Kind Private Credit Model

The strategy is among the first fintech-enabled private credit approaches specifically targeting MSME lending in emerging markets. It builds on Fasanara’s experience delivering diversified private credit investments for institutional investors.

By demonstrating that fintech-originated MSME receivables can represent a scalable and investable asset class, the initiative aims to crowd in additional institutional capital — helping to reduce financing costs and improve long-term sustainability.

If successful, the partnership could serve as a blueprint for channeling global private capital toward underserved entrepreneurs, supporting inclusive growth while offering investors exposure to high-impact emerging market credit.