ABN AMRO Sustainable Impact Fund invests in Lendahand
Written by Koen The on 4 May 2022
The ABN AMRO Sustainable Impact Fund (AA SIF) is acquiring a stake in Lendahand to further grow the crowdfunding platform and its mission to fight poverty in emerging markets by investing in people and their businesses.
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.
Since 2013, thousands of investors have already invested 125 million euros in various sectors such as renewable energy and agriculture, contributing to improved living conditions for over 1 million people. Besides installing tens of thousands of solar panels, they have also supported thousands of female entrepreneurs worldwide.
Reaching crowdfunders in France
The investment from AA SIF enables further expansion to other European countries to reach more crowdfunders. With two French institutional investors (INCO and NGO ACTED, as part of their 3zero ambition) investing in this round, Lendahand is receiving an investment of €5.5 million in total to further expand in France as the first new market. Besides that, the new capital can strengthen Lendahand’s position in the target markets to further identify new projects and companies to crowdfund.
Involved in investments
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, 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 to reach 1 billion euros invested in emerging countries through its platform by 2026.
ABN AMRO Sustainable Impact Fund (AA SIF)
The AA SIF is owned and funded by ABN AMRO and has its own investment policy. The fund aims to combine social and financial returns by investing in companies that accelerate the transition towards a sustainable and inclusive society in three areas: the circular economy, the energy transition and social impact. The fund makes venture capital investments ranging from 500,000 to 4 million euros in companies with a proven concept and private equity investments of 4 to 30 million euros in companies that have a proven business model and that are ready for the next phase of their growth.
ACTED is one of the top 15 international solidarity NGOs that articulate emergency humanitarian aid, stabilization, and recovery of people affected by crises. With 7,000 employees serving 20 million people in more than 40 countries and an annual budget of €390 million, ACTED works and advocates for a world of Zero Exclusion, Zero Carbon, Zero Poverty, and the achievement of Sustainable Development Goals (SDGs).
INCO Ventures manages or advises five funds on their impact investments and supports one fund on its impact measurement. These funds are dedicated to financing companies and projects with social and/or environmental impact. They support the scaling of tomorrow's world structures with passion, commitment, and control.