Photo - GreenArc Capital
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GreenArc Capital

Using AI driven technology to foster financial inclusion

Singapore
Market: Financial services
Stage of the project: Prototype or product is ready

Date of last change: 15.05.2020
Min investment
$  500.000
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Total required
$ 1.000.000
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Idea

Connecting accredited investors with investment opportunities within the private debt lending space in emerging markets, expanding the financial channels available to vulnerable populations. Using AI driven technology, the platform manages credit, financial and impact risk as it allocates private capital to an otherwise underinvested asset class, providing debt lending to MSMEs and unbanked populations in Asia. In addition to attractive financial returns, investments are driven by social or environmental goals, and can be customised and aligned according to social sectors and UN SDGs.

Current Status

Seed capital raised from Silicon Valley VC Fund,
MAS FSTI innovation grant received along with tier1 European bank partner (first impact fund to receive this)
Tech build version 1 ready – pilot investor usage in progress
Pilot transaction ($10mil) ready – intentionally delayed by a quarter due to COVID-19

Market

There is a $2.7 trillion financing gap in MSME lending in EM Asia, and >500million unbanked or underbanked adults that do not have access to formal financial services.
The serviceable available market is $502 billion, representing the institutional impact investment market.

There has been an increase in AUM in sustainable investment strategies of 182% over the last 6 years, expected to grow to be 95% of global AUM by 2030.

Problem or Opportunity

There is a currently a $2.7 trillion financing gap for MSMEs in EM Asia, who provide 40% of GDP contribution and 90% of employment. At the consumer level, >500 million adults, mainly from marginalised or base of the pyramid populations, remain unbanked or have little access to financial services or credit. With the growth in demand for sustainable and impact investments, estimated to be 95% of global assets by 2030, and an expected wealth transfer of $24 trillion to the more socially conscious millennial generation, there is a a need to ensure this private capital is directed to the most scalable and impactful investment opportunities. The private debt lending market remains untapped and underinvested as the loan requirements by MSMEs and individuals is too small for efficient and lower cost institutional capital to access the market.

Solution (product or service)

Our fintech credit lending platform facilitates debt lending to MSMEs and underbanked populations across a range of social and environmental opportunities. Thus, we aim to provide investors with access to a stringently curated diversified debt portfolio that can be aligned with their social impact goals whilst targeting attractive financial returns.

The platform employs rigorous credit analytics with impact assessment and measurement tools to provide investors:

- Customised debt investments aligned with social impact goals and UN SDGs
- Diversified alternative financing solutions across debt origination platforms and fintech lenders offering attractive financial returns
- AI driven portfolio management tools to monitor and manage portfolio risk, financial performance and automated reporting
- Identification, measurement and reporting of social return on investments

Competitors

There are currently no fintech lenders providing investors social impact and UN SDG aligned private debt investment opportunities in SE Asia.

Advantages or differentiators

There are currently no fintech lenders providing investors social impact and UN SDG aligned private debt investment opportunities.

Unlike financial investment funds, a fintech platform enables scale, lower cost debt and greater risk diversification across multiple lenders and assets.

In addition to offering attractive financial returns, we provide accredited investors customised portfolios with social impact measurement and reporting on their investments.

Business model

Accredited investors pay a platform origination fee of 1% to access private debt investment opportunities
Social/fintech lenders pay 1% platform fee for debt capital financing

Money will be spent on

Business development to onboard European investors
Version 2 of tech build – to incorporate advanced AI components
Onshore origination capacity in India and Indonesia

Offer for investor

To be discussed at point of interest

Team or Management

Won the competition and other awards

Innovest Unbound names GreenArc Capital as one of 50 most disruptive start-ups in SE Asia

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
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Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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Website address