Pop-Up SPVs: de-risking clean technology SME finance in emerging markets

Impact Goal: Mobilise capital for low-emission technologies to create jobs, build resilience, and drive sustainable growth Description: Offgrid.Finance Ltd. is pioneering a solution to the significant finance gap faced by SMEs in developing markets, focusing on providing access to commercial and climate capital for clean technology. It leverages a novel approach through the creation of "Pop-Up SPVs" (Special Purpose Vehicles) to offer large-ticket size institutional capital to smaller-ticket SME asset financing. This mechanism is particularly innovative for its use of low-code technology for process automation and clean technology as collateral, thereby de-risking investments significantly.

Offgrid.Finance Ltd. aims to address these challenges by deploying blended commercial and climate capital to SMEs for acquiring low-emission and productive-use technology. The introduction of Pop-Up SPVs reduces set-up and operational costs by approximately 50% compared to traditional financing methods, facilitated by the use of emerging technologies for loan process automation and management. This innovative financial model aims to leverage significant amounts of capital towards clean technology investments in SMEs, thereby contributing to job creation, climate resilience, and sustainable economic development in emerging markets.