IFC Injects $50M into VPC Fund to Boost Fintech Lending for MSMEs in EMs
The announcement follows IDB Invest’s additional $50 million commitment to the Fund in January 2025, demonstrating growing confidence in the Fund’s approach and its impact on emerging financial ecosystems.

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In a significant step to enhance financial inclusion and economic resilience across emerging markets, the International Finance Corporation (IFC), a member of the World Bank Group, has announced a $50 million follow-on investment in Victory Park Capital Investor Fund W, LP. This latest capital injection boosts the Fund’s total commitments to over $200 million, marking a major milestone in a collaborative effort to expand access to credit for underserved individuals and micro, small, and medium enterprises (MSMEs).
The announcement follows IDB Invest’s additional $50 million commitment to the Fund in January 2025, demonstrating growing confidence in the Fund’s approach and its impact on emerging financial ecosystems.
Background: A Growing Alliance for Financial Inclusion
The IFC’s renewed support builds on a longstanding partnership with Victory Park Capital (VPC), a global alternative investment firm renowned for its focus on private credit and asset-backed lending. Since its inception, VPC has been an active provider of capital to fintech lenders across Latin America, Sub-Saharan Africa, Southeast Asia, and other emerging regions.
The Fund, now extended to operate through 2030, is specifically designed to provide debt financing to next-generation fintech platforms—those offering innovative lending solutions tailored to the needs of financially underserved populations.
Strategic Impact: Fueling MSME Credit Access in Latin America
In a region where traditional financial institutions often fail to meet the credit needs of small businesses, IFC’s investment seeks to bridge persistent financing gaps for MSMEs. These enterprises—widely recognized as the engine of job creation and GDP growth—struggle with limited access to working capital, rigid underwriting processes, and insufficient financial infrastructure.
“MSMEs are the backbone of economic growth and employment in the region,” said Elizabeth Martínez de Marcano, IFC’s Regional Director for Latin America and the Caribbean. “This investment will help bridge that gap by supporting innovative fintech solutions that bring affordable credit where it’s needed most.”
By supporting fintechs in Mexico, Colombia, and other key markets, the Fund enables the scaling of digital platforms that can reach clients previously excluded from formal credit systems.
VPC’s Perspective: Catalyzing Fintech Innovation
VPC expressed enthusiasm about the continued collaboration with IFC. Gordon Watson, Partner at VPC, remarked: “We’re proud to continue our partnership with IFC, whose ongoing support is a strong endorsement of our strategy to expand access to responsible credit for underserved small businesses across Emerging Markets. Together, we’re helping fuel the growth of financial platforms that are transforming local economies.”
These fintech platforms are not only expanding loan access but are also leveraging data analytics, mobile technology, and alternative credit scoring to better serve thin-file and unbanked populations.
Beyond Capital: A Focus on ESG and Inclusive Growth
The IFC’s involvement goes beyond financial support. It includes technical assistance to improve environmental, social, and governance (ESG) standards within VPC’s operations. This encompasses:
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Implementation of a robust Environmental & Social (E&S) Action Plan
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Strengthening anti-money laundering (AML) and compliance protocols
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Integrating gender-disaggregated data collection to promote inclusive finance
These measures aim to enhance transparency, reduce systemic risks, and align the Fund’s activities with IFC’s sustainability and gender equity objectives.
Positioning Fintech as a Pillar of Sustainable Development
The VPC Fund represents a growing trend in global development finance: leveraging fintech ecosystems as scalable vehicles for inclusive economic growth. With traditional lending models often falling short, particularly for MSMEs and informal businesses, fintech lenders offer agile and innovative alternatives that can reach the last mile.
IFC’s support signals a strong vote of confidence in the commercial viability of these fintech models. It also contributes to IFC’s wider mission of deepening venture debt markets and strengthening financial infrastructure in emerging economies.
A High-Impact Partnership with Global Implications
As global financial institutions seek new avenues to address inequality and drive sustainable development, the IFC-VPC partnership stands as a model of blended finance and impact-driven investment. With a shared vision for inclusion, resilience, and innovation, this expanded Fund is poised to transform credit access for MSMEs, support local economic growth, and set new benchmarks for responsible fintech investing.
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