Lendable eyes treasures at SEA

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Hello reader,

I’ve worked a salaried job with a regular paycheck for several years, which means that it’s pretty easy for me to access financial services. When I applied for a credit card last year, approval was near-immediate, and when I was sussing out housing loans, I found that I fit the bill for getting approved for a loan.

It’s not so easy for a dear friend of mine, who’s a freelance photographer. The irregularity of her income means she has a harder time getting approved for loans and credit. And the same applies to businesses.

There are lots of MSMEs that can’t access financing because they don’t meet the requirements set by traditional lenders.

Startups like Amartha and Fazz do are trying to make financing accessible to that segment. And behind their microfinance offerings sits a company like Lendable, which provides the fintech firms with the necessary capital.

Today we look at:

• Lendable and its ambitions in Southeast Asia
• The latest numbers from Meituan
• Other newsy highlights such as why Zipmex may be in jeopardy and the charges facing Do Kwon

Premium summary

Hello, lender

Image credit: Timmy Loen

Lendable is a London-based debt finance provider whose portfolio companies include Southeast Asian fintech firms like KoinWorks, Amartha, Fazz, and F88. It sees a “huge opportunity” in the region’s fintech space – let’s go deeper.

• Money, money, money: Founded in 2014, Lendable aims to improve access to financial services for those who aren’t able to avail them. It provides capital to fintech firms in the form of debt facilities, which they can use to extend credit to their end-borrowers – either individuals or other small businesses.
• Eyes on SEA: In January, Lendable closed a US$110 million impact fund, of which it has deployed 60% to Southeast Asia so far. It views the MSME space in particular as one of the biggest opportunities. Also, compared to the US and Europe, Southeast Asia is seen to be in a good position for debt financing, as the region hasn’t been hit as hard by supply chain disruptions brought about by the pandemic and Russia-Ukraine war. So far, loss rates in Southeast Asia have held up well.
• A matter of interest: In the face of rising interest rates, digital lending firms, which are often dependent on external capital to extend loans, face rising funding costs. Lendable says that demand for debt has held up surprisingly well so far, although it has had to “pass on some increase” on some of its loans starting this year, along with changing demands from its investors.

Read more: Fresh off $110m raise, Lendable eyes ‘huge opportunity’ among SEA fintech firms

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