Amman: The Innovative Startups and SMEs Fund (ISSF) - the largest investment fund of its kind in Jordan - has announced a direct investment of USD 150,000 (over JOD 100,000) in Solfeh; a fintech micro-lending online platform that offers emergency cash advancements to salaried employees. The investment, which was made in January 2021, underscores the strategy of the ISSF to support 150-200 local innovation companies through direct and indirect investments (the latter in investment funds) and build the capacities of at least 825 entrepreneurs and SMEs through specialized training to qualify them for prospective investments.
Solfeh presents socioeconomically-sustainable financial and commercial services that benefit employees and business owners alike. This is achieved through the delivery of emergency microloans to salaried staff in coordination with their companies - with amounts ranging from JOD 200 to JOD 1,000 and a flexible tenor of up to 25 months via a fully automated process that takes a maximum of 30 minutes for users to secure their money - in accordance with advanced IT solutions and financial technologies. Solfeh specifically targets low-income companies and facilitates their continuity and sustainability by enabling them to maintain their liquidity, cash reserves and human resources. Meanwhile, employees of these establishments can request a loan without the need for a guarantor and select their suitable payment scheme, after which the business owner either approves or declines the application, with the option of directly overseeing and following up on the installment plan.
“By extending innovative solutions that deploy the latest financial technologies to serve both individuals and organizations, Solfeh has firmly succeeded in meeting our requirements for direct investment. Supporting youth who possess notable entrepreneurial potential and promising creative ideas in the early stages is not just part of our mission, but is also fundamental for driving national socioeconomic advancement and fostering an inclusive local ecosystem that positions Jordan as a regional hub for innovation and entrepreneurship,” commented ISSF CEO, Laith Al Qasem.
On his part, Solfeh CEO, Ali Tabbalat, stated, “Solfeh has been one of the first companies within the entrepreneurial arena to build a fintech platform that finances salaried public and private sector employees through its application, thereby saving them time, effort and cost, and helping them address emergency situations in cooperation with their employers. With the investment of the ISSF, we are now able to further enhance our product offering and expand geographically, therefore providing greater benefit to all involved parties.”
The ISSF is registered as a Jordanian private shareholding company. The objective of the ISSF is to support and elevate Jordan’s entrepreneurial and innovation landscape by facilitating the establishment of new investment funds that serve the ecosystem; making direct investments in innovative, export-oriented and scalable local startups; as well as implementing initiatives that improve the capabilities of Jordanian entrepreneurs and startup teams through training, capacity building and targeted incubation and acceleration programs.
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About the Innovative Startups and SMEs Fund
The ISSF is a national project established in 2017 as a private shareholding company to actively promote a fundamental shift within the local entrepreneurial and innovation landscape. The ISSF - which is the largest investment fund of its kind in Jordan - is implemented in cooperation with the World Bank over a duration of six years, concluding in November 2023. During this period, the World Bank foresees the ISSF to make both direct and indirect investments (the latter in investment funds) in 150-200 local innovation companies and build the capacities of at least 825 entrepreneurs and SMEs through specialized training to qualify them for prospective investments. The total working capital of the ISSF is USD 98 million, with a USD 48 million investment from the Central Bank of Jordan and a USD 50 million investment from the World Bank. The ISSF is committed to facilitating funding for Jordanian early-stage startups and SMEs, particularly those demonstrating ambitious vision and high growth potential. The ISSF endeavors to foster a thriving and supportive entrepreneurial environment that enables promising local entrepreneurs to transform innovative projects into sustainable startups; generate jobs for Jordanian men and women; and prompt economic sectors that serve export markets by capitalizing on the creative and technical capabilities of entrepreneurs and management teams across Jordan.
For more information, please visit the website at www.issfjo.com
© Press Release 2021
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