Liwwa P2P Lending Platform Secures $2.3M Investment
liwwa Inc, the world’s first and only sharia-compliant peer-to-peer lending platform, closed a second round of equity financing worth $2.3 million led by Silicon Badia. DASH Ventures and investor Samih Toukan also participated in the equity financing. The Amman-based marketplace lender aims to facilitate access to capital for small businesses. In the Middle East alone, that gap is estimated at $250 billion. “We’ve had over $500 million in demand though the website, and we’ve only been able to service $1.6 million,” explained Ahmed Moor, liwwa’s CEO. These funds were lent to 75 small businesses. liwwa leverages statistical methods to produce a lightweight credit assessment process designed to supplant cash flow underwriting. So far, liwwa’s Shadow Underwriting regression model is 97% predictive of cash flow underwriting outcomes. Lenders, include over 1,300 individuals and entities, including 3 regional banks: Bank al Etihad, Arab Bank, and Capital Bank. Previously, the platform had raised $500,000 from DASH Ventures, which brings its total investment after this round to $2.8 million. liwwa will use the funds to grow its underwriting capacity in Jordan and the MENA, as well as open its New York software development and data center.