Resources: The FIWAM Growth Program – Championing Financial Solutions for Women Migrants /

Would you like to know how the ILF for GIF accelerates the growth of FinTech startups developing gender-inclusive financial solutions? The FIWAM program by Seedstars is a great example.

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The Financial Innovations for Women Affected by Migration (FIWAM) Growth Program is the second accelerator program implemented under the Impact-Linked Fund for Gender-Inclusive Fintech (ILF for GIF). In partnership with Seedstars, the program aimed to accelerate the growth of FinTech startups developing gender-inclusive financial solutions. By addressing the significant barriers women migrants face in accessing financial services, the FIWAM growth program supported innovative enterprises creating tailored solutions for this underserved population.

A powerful growth program for 29 FinTech startups from MENA, Sub-Saharan Africa and Asia

The program’s objective was pegged on building a strong pipeline of investable companies, nurturing them to develop and/or improve their already existing market-fit solutions addressing these crucial societal challenges. This was achieved by adopting global best practices tailored to their respective contexts across Asia, the Middle East and North Africa (MENA), and Sub-Saharan Africa. By providing technical assistance, hands-on support, and network building, the program strengthened their business and impact management capacities, increasing their attractiveness to investors.

To maximize the impact, the accelerator employed a highly individualized approach. Each FinTech underwent a comprehensive needs assessment at the beginning of the program, allowing them to receive customized support from service providers in areas critical to their business growth. This tailored assistance ensured that the unique challenges and opportunities faced by each startup were effectively addressed. The program successfully engaged 29 FinTech start-ups from MENA, Sub-Saharan Africa, and Asia, 31% of which were women-led, till its completion. The engagement covered areas such as impact measurement, product development, and growth strategies. The FIWAM program culminated in 3 regional events in Dubai, Nairobi, and Phnom Penh, and 1 global event in Malta. These events played a crucial role in providing fintech startups with the necessary exposure and connections to scale their impact and growth. Additionally, the program engaged 26 mentors, 62% of whom were women, and 12 technical service providers who supported 14 startups.

What the FIWAM program achieved

The FIWAM Growth Program facilitated significant financial achievements for participating fintech startups, with nearly half securing investments. By the program’s end, these enterprises collectively raised US$ 2,738,500 in equity and grants, reflecting strong investor confidence in their growth potential and impact. This amount includes US$ 2,335,000 in equity and US$ 403,500 in grants. While no funding was raised through debt, the substantial equity and grant investments reflected strong investor confidence in the startups’ growth potential and impact.

The program also had a notable impact on job creation and employment stability, resulting in 26 new jobs, 16 of which were specifically for women. This emphasis on gender inclusion contributed to a more dynamic and robust workforce, with a significant number of enterprises reporting an overall increase in staff.

Additionally, the program enabled participating enterprises to extend financial access to over 275,000 women affected by migration. During the program, 65.5% of the enterprises successfully reached this target group through various fintech solutions:

• Loan and Savings Services: 267,212 women accessed these services.
• Transaction Solutions: 7,900 women utilized these solutions.
• Insurance Products: 408 women received insurance products.

What we take away from the program

The FIWAM Growth Program has demonstrated its capacity to drive meaningful change by empowering fintech startups to address the unique financial needs of women affected by migration. Through substantial investments, job creation, and expanded financial access, the program has not only strengthened the participating enterprises but also contributed to broader economic and social development. The success of the FIWAM program highlights the importance of continued support for fintech startups focusing on financial inclusion for women affected by migration. The results demonstrate the potential for driving growth and impact when these enterprises are provided with suitable resources, mentorship, and networking opportunities.

Looking forward, sustaining and expanding such initiatives will be crucial to advancing financial inclusion and economic empowerment for vulnerable communities worldwide. By building on these achievements and fostering a supportive ecosystem, future programs can continue to drive transformative change, ensuring that FinTech solutions reach those who need them most and contribute to broader economic development and social progress.

Resources: Fresh insights into Impact-Linked Finance in Bangladesh /

Would you like to know how two innovative Impact-Linked Finance instruments empower high-impact enterprises in Bangladesh? The website of B-Briddhi, a program powered by Roots of Impact, LightCastle Partners and the Swiss Embassy in Bangladesh, has a multitude of inspirations.

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The B-Briddhi (“Scaling Impact Enterprises of Bangladesh”) program is a multi-year public-private development partnership (PPDP) supported by the Embassy of Switzerland in Bangladesh and implemented by Roots of Impact and LightCastle Partners with many other stakeholders, including investors, private sector organizations, incubators, and support organizations for impact enterprises.

A comprehensive impact ecosystem-building program

B-Briddhi was launched in 2020 to enhance the financial, social, and environmental performance of impact enterprises by enabling them to master Investment Readiness (IR) as well as Impact Measurement and Management (IMM). In addition, it gives them much-needed access to innovative and catalytic funding, which puts them in a much better position to scale their impact. In the meantime, there are many case studies and learnings available from the program, which also cover the Impact-Linked Finance instruments used under the catalytic funding pillar: Impact-Ready Matching Funds (IRMF) and Social Impact Incentives (SIINC). Find some selected case studies below:

Three inspiring case studies of Impact-Linked Finance for high-impact enterprises

Apon Wellbeing provides factory workers, especially women, with low-cost everyday items, free health service and interest-free credit facilities in Bangladesh -> check out the case study!

SOLSshare is empowering rural communities in Bangladesh by deploying affordable and accessible renewable energy solutions. It also expanded its portfolio to include clean energy solutions for the transportation sector -> get more insights in this case study

Sheba has  established itself as a market leader for servicing MSMEs (micro, small, and medium-sized enterprises) in Bangladesh. One arm is sManager, a holistic suite of services intended to address MSME challenges and improve their livelihoods.  -> read more about this case!

 

Find all the resources here:

Interview: Making Impact-Linked Finance work for ATEC /

Another impact enterprise in the WASH space is using Impact-linked Finance to deepen its impact: Hear from Nikolai Schwarz, Country Director Cambodia at ATEC, what SIINC can do to help drive the company’s impact journey.

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The Social Impact Incentives for Water, Sanitation and Hygiene (SIINC for WASH) is an innovative, results-based financing program co-designed and implemented by Roots of Impact and Aqua for All. It rewards selected water and sanitation enterprises with time-limited payments for achieving additional social and environmental impact. Khmer Water Supply Holdings (KWSH) is one of the program’s first beneficiaries.

About ATEC

Developed by Engineers Without Borders Australia and Live & Learn Environmental Education, ATEC provides biodigesters to smallholder farmers in Cambodia and more recently also in Bangladesh. The standalone biodigester collects waste (mostly manure, but also human and bio waste) and transforms it into biogas for clean cooking and organic fertilizer. This, in turn, translates into many benefits for both the people and the planet. ATEC has pioneered the first PAYGO model for biodigesters that gives smallholder farmers the opportunity to pay off in installments using digital money.  -> check out more details in the ATEC case study!

 

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The enterprise’s experiences with SIINC, the drivers for its exciting impact journey and some surprises with culture and customers are vividly described in this inspiring interview with Nikolai Schwarz, ATEC’s Country Director in Cambodia -> read it now!

A quote from the entrepreneur

“SIINC is a fantastic tool to make harder to reach market segments commercially attractive and more accessible. Building the SIINC metrics into our financial modelling definitely reduces our risk profile and positively impacts our access to and interactions with current and future investors. For us, it’s a quality seal and a way to clearly steer us towards impact. It also demonstrates that we are able to make use of highly innovative impact finance mechanisms and get out of our comfort zone by trying something new. “

Nikolai Schwarz, Country Manager Cambodia, ATEC

Resources: The Impact-Linked Fund for WASH has launched /

Would you like to see how Impact-Linked Finance is empowering impact enterprises in the WASH sector? A new page by our program partner Aqua for All has all you need to know.

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Building on the promising results of the SIINC for WASH programme, Aqua for All and Roots of Impact are continuing their partnership by launching the Impact-Linked Fund for WASH (ILF for WASH). ILF for WASH aims at enabling pioneering impact enterprises in Africa, Asia, and the Middle East to gain access to suitable and innovative finance. By using Impact-Linked Finance and providing “better terms for better impact”, these WASH enterprises get equipped to grow their businesses, expand the reach of their solutions, and create impact at scale. This will ultimately contribute to achieving Sustainable Development Goal 6,  universal access to clean water and sanitation.  

An innovative Impact-Linked Finance program

What’s new about ILF for WASH is that on top of Impact-Linked Finance, the fund provides technical assistance that incorporates a two-throng approach to address impact-related challenges. Firstly, enterprises will be directly supported through an Impact-Linked Finance Readiness Bootcamp. This bootcamp aims at providing targeted support to improve enterprises’ impact measurement and management (IMM) systems. Secondly, specialised Train-the-Trainer programmes will strengthen the capacity of wider ecosystem players and empower service providers to deliver foundational support such as basic training on IMM to enterprises.

A quote from an entrepreneur

“SIINC is a fantastic tool to make harder to reach market segments commercially attractive and more accessible. Building the SIINC metrics into our financial modelling definitely reduces our risk profile and positively impacts our access to and interactions with current and future investors.”

 

Nikolai Schwarz, Country Director Cambodia, ATEC

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Resources: Explaining Impact-Linked Finance to Investors /

Are you an investor who wants to learn from practitioners how to identify the right social finance tool for your impact objective? AVPN Academy has launched two more modules for its free Social Finance courses – including Impact-Linked Finance.

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The Social Finance Centre is a practitioner-focused learning centre developed by AVPN in partnership with UBS Optimus Foundation. Two new modules were launched in June 2022 and our partner Roots of Impact contributed valuable insights in Impact-Linked Loans and SIINC.

About the modules

The modules  “How to Choose the Right Social Finance Tool” and “Partnering for Social Finance” are meant to inspire practitioners in Asia-Pacific and beyond, and include experts from Roots of Impact, UBS Optimus Foundation, Japan Social Innovation and Investment Foundation (SIIF), Convergence Blended Finance, Trisector Associates, and Piramal Foundation. Enrol for free to access the videos and enjoy your learning journey!

Interviews: How SIINC creates win-win-win situations in the WASH sector /

Impact-Linked Finance solutions such as SIINC effectively support impact enterprises in the WASH sector to deepen their impact. Listen to the voices of William Puyo from KWSH and Pratap Thapa from aQysta to learn what this innovative practice can do for them and their most important stakeholders.

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The Social Impact Incentives for Water, Sanitation and Hygiene (SIINC for WASH) is an innovative, results-based financing program co-designed and implemented by Roots of Impact and Aqua for All. It rewards selected water and sanitation enterprises with time-limited payments for achieving additional social and environmental impact. Khmer Water Supply Holdings (KWSH) is one of the program’s first beneficiaries.

KWSH Interview

Khmer Water Supply Holding (KWSH) offers clean and affordable water services to (semi–) rural households since 2013. The impact enterprise acquires private rural piped water stations and increases their production and distribution capacities to underserved areas. Customers pay a one–time fee to have a water tap installed on their premises. 

Check out more details in this interview with William Puyo from KWSH!

aQysta Interview

aQysta offers sustainable hydro-powered pumping solutions that have a positive economic, environmental and social impact. Their flagship product “Barsha Pump” is an award-winning innovative pump, which has been rolled out in various countries worldwide and provides farmers with sustainable irrigation that allows them to increase productivity.

Check out more details in this interview with Pratap Thapa from aQysta!

Quotes from the entrepreneurs

“SIINC is a clear win-win-win situation for all parties involved. For our existing grant providers, it makes sure that we stick to our mission statement and impact objective. For our lenders and shareholders, SIINC improves our commercial performance by allowing us to install connections to last-mile households and then serve these households in perpetuity. And for our end users, SIINC enables them to access services that they would otherwise be excluded from.“

William Puyo, General Manager of KWSH

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“One of the big differences of SIINC for WASH is that the other programmes typically had milestones based on implementation, not on impact. For example, they rewarded how many pumps we installed or how many acres we irrigated, but not how much we were able to increase the income of the farmers we serve. SIINC for WASH is much more targeted towards outcomes, not outputs. Also, the metrics are not predefined but customized to what you want to achieve as an entrepreneur in terms of depth and breadth of impact.”

Pratap Thapa, Co-Founder of aQysta

Resources: Making Impact-Linked Finance work for KWSH /

Curious how Impact-Linked Finance helps impact enterprises in the WASH sector to deepen their impact? Here is an inspiring video with William Puyo, General Manager of KWSH, who closed a SIINC transaction in June 2021 as part of the SIINC for WASH program.

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The Social Impact Incentives for Water, Sanitation and Hygiene (SIINC for WASH) is an innovative, results-based financing program co-designed and implemented by Roots of Impact and Aqua for All. It rewards selected water and sanitation enterprises with time-limited payments for achieving additional social and environmental impact. Khmer Water Supply Holdings (KWSH) is one of the program’s first beneficiaries.

About KWSH

Khmer Water Supply Holding (KWSH) offers clean and affordable water services to (semi–) rural households since 2013. The impact enterprise acquires private rural piped water stations and increases their production and distribution capacities to underserved areas. Customers pay a one–time fee to have a water tap installed on their premises. Over the next five years, KWSH aims to organically grow its existing portfolio stations and more than double the number of households within its license areas -> check out more details in the KWSH case study!

The video excerpt below is from the Investing for Good webinar held in June 2021 upon the launch of their report “A review of impact-linked finance: does incentivising impact work?”

A quote from the entrepreneur

“With the support from SIINC for WASH, we expect to bring our services to thousands of additional households, which would otherwise continue to be excluded. We are really looking forward to seeing these incentives push us to deepen our impact and stay true to our mission statement.“

William Puyo, General Manager of KWSH

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Interview: Empowering Vulnerable Youth With SIINC as a Strong Ally /

From the entrepreneurial journey to the SIINC experience, Co-Founder Katia Cerwin provides a look behind the scenes of Programa Valentina

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Programa Valentina owes its name to Valentina Tereshkova – the first woman in orbit – and goes back to the enterprise’s initial idea of teaching girls how to code as the fastest way to provide them with better opportunities. Yet things have changed since inception, lessons were learned, and successes achieved. Katia Cerwin, Co-Founder of Programa Valentina, tells us about how to transform an industry, master an emotional rollercoaster, and use SIINC as a strong ally to keep the most vulnerable clients in focus when adapting to a pandemic.

What is Programa Valentina’s vision and mission?

We want to transform the Human Resources (HR) industry, and have recruiters hire young people based on potential, rather than on experience or background.

What inspired you to tackle this problem?

All began when my husband and I decided to ask for donations rather than wedding gifts. We wanted to invest in a cause that we felt strongly about. Then we remembered a remark from a friend: to help people’s progress in Guatemala, one should teach girls how to code. After a pilot in a rural area two hours away from Guatemala City, we received the first instrumental advice that would significantly change our journey. We were told that if we really wanted to empower women, we needed to include men – to ensure that women felt as equals and not as unique targets of a special program. Programa Valentina 2.0 was born. We no longer focused on programming, but rather on teaching basic tech skills to young adults of all sexes. Then, when researching about employment, or rather about under-employment, we identified a big gap between what companies need and what the educational system provides. This is why we decided to target young adults graduating from school to avoid that they join the 70% of population working in the informal economy.

Can you tell us about the biggest challenge on your journey so far?

I am a graphic designer by background. I did not study to become an entrepreneur and did not know how to lead a team. You could say that I was thrown on a rocket and had to learn how to steer it. It has been an extremely interesting journey, filled with joy and frustration at the same time, but having a team of rock star women has been extraordinary throughout. Every week comes with new challenges and learnings. I once received a precious advice I want to share: “If things don’t go according to plan, don’t hit the wall, but rather take a right or a left turn.” When you are trying to transform an industry and change behavior, an emotional rollercoaster seems unavoidable. You realize it is all worthwhile, though, when a young person is thanking you for the amazing turn their life has taken thanks to Programa Valentina. It’s those small wins along the way that keep you pushing on.

 

What made you apply to the SIINC VSD program?

A friend of mine, who runs an impact fund, came across the program and thought that Programa Valentina would be a great candidate. We had heard about impact bonds in Colombia, so we had an idea of what payments for results are. SIINC seemed to be a great fit, given the stage we were in. We only understood later in the process that SIINC was simply made for us. We had the impact, we wanted to grow, and we could use some help to ensure that we do not deviate from the original impact trajectory. And that’s exactly what SIINC enabled us to do. Thanks to SIINC, we didn’t have to choose between impact and survival – this held particularly true in a challenging year such as 2020.

 

What was the process like?

It was a rigorous process, I admit. Roots of Impact asked a lot of questions that helped us use and interpret all the data we had available.[1] We loved every question, since it made us explore our impact and put things into different perspectives. It was the first step to understanding the real importance of leading by data. We were already doing this, but not to its full potential, as we realized. So we identified the metrics that SIINC would incentivize: (1) the proportion of people placed who belong to the most vulnerable category, and (2) the percentage of vulnerable people still being employed after one year. This two-way process allowed to design the metrics in a way that made them highly relevant and feasible, even in pandemic times.

 

What challenges did the COVID-19 pandemic bring along for Programa Valentina?

Due to COVID-19, more than 80,000 jobs were lost in Guatemala. The pandemic really forced us to sit down and make tough decisions. While we were fortunate to have some financial runway, we had a couple of months with zero revenues. SIINC was our constant reminder not to forget about our impact when we had to adapt our model as a consequence of the pandemic. And it really helped us a lot: We were able to add some additional emergency metrics that allowed us to get quicker disbursements and that supported us with other services that we developed post-pandemic.

[1] Roots of Impact is the implementing partner, leading the screening, selection, structuring and impact verification process of the program.  

How does SIINC compare to other programs you know or have been part of?

While some aspects such as the due diligence are quite similar across the board, SIINC is truly different in two aspects: in terms of easy and quick disbursements and with respect to the freedom to use the financing in what we as an enterprise, deem as most suitable. This is particularly important in our stage of rapid growth, where we have to take fast decisions on a monthly basis. By contrast, technical assistance support, for example, is often more rigid in requirements and funding means. Such rigid structure helped us in the past to become more organized. But at the end of the day, SIINC provides you with the freedom to find new solutions for whatever needs you have, while still allowing you to focus on impact.

 

“SIINC provides you with the freedom to find new solutions for whatever needs you have, while still allowing you to focus on impact. Thanks to SIINC, we didn’t have to choose between impact and survival – this held particularly true in a challenging year such as 2020. And for potential investors, SIINC is a seal of approval.” 

Katia Cerwin, Co-Founder Programa Valentina

 

How does SIINC resonate with private investors?

When we mention SIINC to potential investors, it is always a great plus. Not only because SIINC is a seal of approval, but also because it helps us reach breakeven, and this in turn is of strong interest to investors. We still have to raise the series A by the end of 2021 as part of the SIINC contract, and I am sure that SIINC’s support will help us in doing so. Fundraising is a difficult task, particularly when you are a Guatemalan, female-led enterprise with impact at the heart. It seems to me that impact is often seen as a “nice-to-have”, but not necessarily the focus of many investors’ attention, unfortunately. Things are changing, though, and we will get there.

By then, we aim to have expanded from Guatemala to Colombia and ideally to another country. Now that we know that our solution works, we need to show it at a scale. Our goal is to find the right impact investors who see our potential and join our series A. With SIINC as a strong ally, I am highly confident that we will get there.

 

How would you describe the value add of SIINC in one sentence? 

SIINC is about having the opportunity to create impact without compromising on revenues and sustainability.

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Interview led by Leonessa Crisci, Roots of Impact

Photos: a glimpse into Programa Valentina’s impactful work, team and excited trainees / copyright: Programa Valentina