FinTech LendMN raises $20m to boost MSME lending in Mongolia

By Gloria Methri

Mongolia’s digital lending FinTech, LendMN has announced a $20 million debt financing deal from Lendable, a debt finance provider specialising in technology-driven companies. This transaction, advised exclusively by Delphos, marks the first time a Mongolian FinTech company has secured funding of this scale.

The financing is aimed at supporting LendMN’s goal of enhancing financial accessibility for underbanked micro, small, and medium enterprises (MSMEs) in Mongolia. LendMN, which offers 24/7 mobile-based financial services, has played a pivotal role in transforming Mongolia’s financial services landscape since its launch in 2017.

In 2024, the company introduced its Flexi Business Loan — Mongolia’s first fully digital, collateral-free business financing solution for MSMEs. The platform has since disbursed around $70 million, benefiting 3,800 micro and small business owners. On average, approximately 630 MSMEs use the app daily to apply for business loans.

Lendable’s investment in the firm is aligned with its broader mission to advance financial inclusion and promote sustainable economic growth in emerging markets. The move is expected to encourage further international investment in Mongolia’s FinTech sector.

According to the Asian Development Bank, nearly 90% of registered businesses in Mongolia are SMEs, yet only 10% of approximately 37,000 SMES have regular access to bank financing. Additionally, World Bank Enterprise Surveys reveal that 31% of Mongolian firms face full credit constraints, a figure higher than the regional average in East Asia and the Pacific.

Commenting on debt financing, LendMN CEO and Board member, Uuganbayar Tserendorj said, “We are delighted with this achievement and it serves as an indication of LendMN’s robust technology and the success of our business model focused on serving underbanked segments, opening doors to potential future international investment opportunities. We aim to deliver meaningful, digital financial services for all, and Lendable’s backing brings us one step closer to reaching this goal.”

Suresh Samuel, Managing Director and Head of FinTech at Lendable, added, “LendMN has, through its strong foothold in Mongolia, showcased an impressive ability to bring digital financing to underserved segments in the country, allowing people to improve their lives and support their small businesses. We are delighted to support a company of this calibre, with a demonstrated track record and a strong management team. We see significant opportunities ahead, especially within the digital MSME financing space, and are pleased to play a role in that growth.”