Liwwa to Invest Part of a $3m Pre-Series B Funding in Expanding the Business in Egypt

As Covid-19 restrictions in Jordan and Egypt gradually ease, SMEs are in need of financial support to recover from the impact of the pandemic, liwwa is increasing its efforts to provide companies with much-needed finance as published in Arabian business website

The Jordanian fintech company and lender for small businesses signed a $2.2 million debt finance agreement with Triodos Fair Share Fund and Triodos Microfinance Fund to continue its financial support of SMEs in Jordan. The Bank is an expert in sustainable banking and operates in five European countries.

“With the increased number of vaccinations and the reduction in Covid-19 numbers, the economy is reopening. This has allowed SMEs across different sectors to get back on their feet,” said Dennis Ardis, liwwa’s CEO told Arabian Business.

“They need financing and liwwa is happy to be at the frontline in providing this kind of support. Hopefully, more people will get vaccinated and the recovery continues from here,” he added.

The agreement with the funds comes in parallel with liwwa's pre-series B funding, where it’s aiming to fundraise $3m in equity to continue providing fast, affordable credit to small and medium businesses via a ‘tech and touch’ approach to promote and accelerate economic growth and job creation in Jordan and Egypt.

Through liwwa’s digital platform, borrowers have the option to apply for loans online which saves valuable time, especially in Egypt where the size of the country and traffic conditions are obstacles to direct sales, explained Ardis.

“A big part of the funds raised will go towards obtaining an SME license in Egypt and growing the business,” said Ardis explaining that they are currently registered as a broker in Egypt which limits their operations.

“Another part will allow us to continue growing our tech team who are building the tools to enhance our efficiency, especially when it comes to continued enhancements to our liwwa Invest platform which will enable us to do greater off-balance sheet lending. Finally, there is so much momentum in the Jordan operations and the additional funding will allow us to leverage this momentum and continue scaling our business,” he continued.

The fintech company plans to kick-off its series B funding in March next year, and Arids said “the current pre-series B will allow us to achieve great results and growth that will enable us to raise a very significant series B.”

Liwwa has secured $1.3m through convertible notes out of the targeted $3m through its partnerships with FMO, DASH Ventures, Bank al Etihad, Edgo and the Qattan family and is well placed to secure the remaining $1.7m from new investors.

It has financed over 160 loans so far in 2021, a 54 percent increase over last year's figures. Access to finance is a challenge for SMEs in the wider MENA region, including Jordan, and liwwa – which has been operational for six years now – has provided more than $55m in debt to qualified SMEs. It employs technology across its operation to deliver loans of up to $100,000 in 48 hours.

For the next three years, liwwa will be focused on Jordan and Egypt but could look into regional expansion after this period.

“From the research we have done, there is a lot of untapped potential here in Jordan and Egypt is a mass market. For the sake of focus and execution, I think our focus will remain on these two countries,” Ardis said in an earlier interview with Arabian Business.

“Towards the end of the three-year target period, it will get very exciting to think of where we will go next. It will be somewhere in the region, with the potential of possibly adding Turkey to the list, but that is further out,” he said.