IFC and Fasanara launch fintech-powered push to fund small businesses in emerging markets

The International Finance Corporation (IFC) and London-based asset manager Fasanara Capital have announced plans to launch a new lending strategy aimed at channelling affordable financing to micro, small and medium-sized enterprises (MSMEs) in emerging markets, with a particular focus on women-led businesses, according to the IFC. The initiative will work by investing in trade receivables and digital invoices acquired by fintech lenders that already serve small businesses — helping those lenders scale up and reach more clients faster.

The financing gap facing small businesses globally is enormous. An estimated $5.7 trillion in unmet demand leaves countless MSMEs unable to grow, hire or weather economic shocks, with women entrepreneurs bearing a disproportionate share of that burden. Fintech companies have stepped in as a faster, more accessible alternative to traditional bank loans, but many lack the capital to meet rising demand — and that is precisely where this partnership is designed to make a difference.

“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,” said Mohamed Gouled, IFC’s Vice President for Products and Clients. Fasanara CEO Francesco Filia added that by combining the firm’s technology-enabled credit capabilities with IFC’s development expertise, the initiative offers “practical solutions that can broaden access to finance and support sustainable economic participation.”

The strategy is being positioned as one of the first fintech-enabled private credit approaches to specifically target MSME lending in emerging markets at scale. Beyond the direct impact on small businesses, the partnership aims to demonstrate that this type of lending can be a viable and attractive asset class for institutional investors — a move that could unlock a much larger wave of private capital over time.

If the model proves out, it could offer a replicable blueprint for closing financing gaps in other markets where traditional banking has consistently failed to reach the businesses that need capital most.