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Blended Finance: How It Can Transform the MSME Landscape in Bangladesh

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LightCastle Analytics Wing
December 8, 2022
Blended Finance: How It Can Transform the MSME Landscape in Bangladesh

Access to finance is a major impediment to MSME growth in Bangladesh. Despite the presence of approximately 60 banks, 34 NBFIs, 760 MFIs, and 17 alternative investment firms in Bangladesh, MSMEs frequently struggle to attract capital that is in line with their needs and characteristics, and as a consequence, quite often fail to develop to their full potential. Given the current state of the ecosystem, early-stage businesses such as MSMEs require patient or risk capital; such options, however, are scarce at the moment.

At LightCastle Partners, we believe Blended Finance can play a pivotal role in addressing the key gap in the market. Simply put, Blended Finance is a combination of government/non-profit grants, equity instruments, and debt instruments infused in a business. Effective implementation of this concept can open the door to sustainable development of the entrepreneurial ecosystem in Bangladesh and beyond.

Through our work in Blended Finance, LightCastle Partners has been striving to strengthen the MSME Ecosystem in Bangladesh. Through our projects, we have mobilized over BDT 5.68 Mn+ in investments for 45+ enterprises across 17+ sectors. With the support of our development and financial partners, we have worked to foster sustainable growth for businesses through long-term financial and social impact.

Read our latest publication to discover more about our work in blended finance and how it can be the key to transforming the MSME ecosystem in Bangladesh.


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WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

For further clarifications, contact here: [email protected]

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