Deadline: 30 April 2019
UNCDF, in collaboration with UNESCAP, has launched an Innovation Fund on digital solutions for micro, small, and medium-sized enterprises in Asia-Pacific.
The Innovation Fund seeks to co-fund companies to pilot innovative digital and financial solutions that improve access to finance and/or enhance operational efficiency of women-led MSMEs.
Funding Information
- The Innovation Fund is targeted at solutions that are ready for pilot testing and will provide US $25,000 to US$ 50,000 of co-funding for selected projects. Selected applicants will be expected to fund at least 30% of the total project cost. UNCDF will provide successful applicants with:
- Technical assistance (development and design)
- Mentorship
- Connection with investors
- Early-stage grant
- If the pilot is successful, it may also be possible to gain additional grants or financing from UNCDF or partners for project scale-up.
- The grant fund will be based on agreed milestones and provided as reimbursement for project costs incurred. The payment schedule will be as follows:
- 80% subject to completion of interim milestones.
- 20% final payment subject to completion of final milestones.
Eligibility Criteria
Eligible applicants who can apply for the Innovation Fund include (but not restricted to): regulated Financial Institutions (Banks, MFIs, Insurance companies); Payment Service Providers; Agent Banking Aggregators; Mobile Network Operators; Technology Providers; FMCG/Agriculture Companies; FinTech Companies; and NGOs.
- Companies with an innovative solution that will lead to increased access to finance for MSMEs, in particular women-owned, managed or led MSMEs – and which is ready for pilot testing in one or more of the target countries (Bangladesh, Cambodia, Fiji, Myanmar, Nepal, Samoa, and Viet Nam).
- The applicant can be based anywhere globally, but the project must target women-owned, managed or led MSMEs in one or more of the target countries.
- Joint proposals between market players in the target country/ies (for example, financial service provider, FinTech company and telecom provider) that expand delivery networks and promote rural/last-mile access to MSME finance are encouraged to apply.
- If the digital solution/product is a financial solution/product which requires piloting with a regulated financial institution and requires regulatory approval before piloting, the applicant must partner with a regulated financial service provider in the target country/ies for delivery of the innovative solution.
- Either the applicant or their financial service provider partner must be a registered entity with at least one year of operations and statutory accounts.
- The applicant must have an existing solution that is ready to undergo pilot testing for a duration of 9 to 12 months.
Evaluation Criteria
- Applicants will be invited to complete an online application form outlining how the project will improve access to finance and/or enhance operational efficiency for women-led MSMEs in one or more of the target countries, and presenting the full implementation and technical details of the proposed pilot testing. Shortlisted applicants will be invited to deliver a presentation to an Investment Committee.
- The Investment Committee will score the proposals according to:
- The innovativeness of the proposed solution
- The additionality of the project (e.g. enabling new or innovative approaches to be piloted that would not normally be financed through commercial financing routes)
- The practicality of implementation
- The sustainability of the proposed solution
- The potential impact of the solution on MSMEs in general and women-owned, managed or led MSMEs in particular.
- The scalability potential of the proposed solution
- The experience of the applicant in the proposed field
- The Investment Committee may also consider additional factors when scoring the proposals.
How to Apply
Interested applicants can apply online via given website.
For more information, please visit https://mailchi.mp/uncdf/innovation-fund