InvesCore NBFI 14

InvesCore NBFI

Company

Mongolia

Country

The project

Please note: This project has a grace period. After 12 months, you will receive your first repayment of your investment, and thereafter, you will receive a repayment every 6 months.

From their workshop in Ulaanbaatar, The WoodBros carefully add a touch of artistry to Mongolian interiors. In 2017, they began hand-cutting and engraving wooden world maps, symbolic of their customers' travels and dreams. Their dedication and craftsmanship quickly caught attention, but the real change came in 2022. Thanks to funding from InvesCore, they elevated their business: renting a garage on the city's outskirts and purchasing a laser engraving machine. This enabled them to accelerate production and push their creative boundaries.

During peak periods like Christmas, The WoodBros' team expands with temporary workers. This not only increases their capacity but also provides employment within the local community. What once started as a hobby is now their full-time passion and profession.

The success story of The WoodBros underscores the need for working capital among small and medium-sized entrepreneurs in Mongolia. InvesCore offers business loans with flexible terms and monthly repayments to help entrepreneurs grow and improve the lives of themselves, their suppliers, and their employees.

What social return could your investment make?

InvesCore recognises the important role small and medium-sized enterprises (SMEs) play in Mongolia's socio-economic landscape. Representing approximately 86% of all active legal entities in Mongolia, these SMEs are fundamental to job creation, poverty reduction, and community empowerment (National Statistical Office (NSO) of Mongolia, 2019). Yet, many entrepreneurs, especially women, face considerable financial barriers.

To bridge this gap, InvesCore has introduced innovative fintech services to democratise access to funding. Their automation of the traditional loan process has not only reduced 80% of manual work and potential errors but also expanded their reach. In 2021, this led to over 1,200 SME owners, of which more than 250 were female entrepreneurs, securing business loans. By investing in InvesCore, you facilitate the disbursement of loans to 20 SMEs in Mongolia. 
 

What financial return could your investment generate? 

• Annual interest rate 6.5%
• Maturity of 24 months
• Grace period: This project has a grace period. After 12 months, you will receive your first repayment of your investment, and thereafter, you will receive a repayment every 6 months.
• With an investment of 1,000 euros, your expected total repayment would be 1,098 euros.

The story of InvesCore

InvesCore is the largest financial institution in Mongolia. They provide business loans to SMEs in Ulaanbaatar and agricultural businesses in rural areas. They also offer business training to support entrepreneurs.

With their own Loan Origination System (LOS), they process loan applications from over 80,000 clients, saving time. After a successful IPO in 2019, where 15% of the shares were sold, InvesCore plans an international expansion into Central Asia and Southeast Asia.

In 2021, InvesCore launched a program, supported by Rio Tinto Mongolia LLC, offering financing at lower costs to vulnerable clients, such as SMEs selling eco-friendly products, entrepreneurs with disabilities, female entrepreneurs, single-parent business owners, and companies conducting import substitution activities. The aim of this program is to improve access to financing and promote sustainable economic growth and inclusivity in the community.

InvesCore in numbers

• Founded in 2016
• Loan portfolio of 74 billion MNT (approx. 60 million USD) (end of 2021)
• 18 branches in Mongolia
• 2 subsidiaries in Kyrgyzstan
• 269 employees
• 40% of their customer portfolio are SME entrepreneurs
• More than 80,000 customers