Lendahand is based in Rotterdam and is an innovative crowdfunding platform that gives private investors access to impact investing in emerging markets. ABN AMRO Sustainable Impact Fund (AA SIF) takes a stake.
The investment from AA SIF enables further expansion to other European countries to reach more crowdfunders. Two French institutional investors (INCO and NGO ACTED) also invest in this round. This way Lendahand receives an investment of €5.5 million in total. To further expand in France as the first new market. The new capital can strengthen Lendahand’s position in the target markets to further identify new projects and companies to crowdfund.
Koen The, CEO of Lendahand, explains: “Countries such as Kenya, Mexico, and Indonesia have plenty of passionate business owners who are willing to put in the hard work to improve the world around them. Unfortunately, inflation and high-interest rates make it difficult to run a business. This is where Lendahand comes in. We want to fight poverty by empowering locals, and we do this with investments by private investors. The platform offers the possibility of providing loans to businesses starting at as little as fifty euros, in exchange for a fair interest rate.” Lendahand’s model is a way for investors to have a specific social and sustainable impact on the world while receiving a return on their investment.
Positive impact created by Lendahand
Since 2013, thousands of investors have already invested 125 million euros. In various sectors of the economy such as sustainable energy and agriculture. Their investments have helped to improve the living conditions of more than a million people. By installing tens of thousands of solar panels, for example, but also by supporting thousands of female business owners.
AA SIF firmly believes in the positive impact created by the platform. Eric Buckens, Investment Director at ABN AMRO SIF notes: “Lendahand is leading the way in raising and utilising crowdfunding to finance sustainable and development goals in emerging markets. Not only does the company have a strong track record in terms of identifying impactful projects, but it also gives crowdfunders the possibility to stay closely involved in their investments. This new venture capital investment will allow the company to take the next step.”
Lendahand expects the loans supplied to emerging markets through its platform to reach 1 billion euros by 2026.