productivity

investment thesis

Financial inclusion and productivity are main drivers for sustained, inclusive and sustainable economic growth and societal progress. However, there is a widespread lack of access to finance and business productivity, particularly among small and medium-sized enterprises (SMEs). Also, basic infrastructure supporting technologies, communications, transportation, and financing that individuals and businesses rely on is not universally available, hindering economic and societal advancement further. Lightrock believes that enabling universal access to better financing, technology and innovation will make value chains, particularly in legacy sectors, and the corresponding businesses more efficient and productive, allowing them to further increase quality and access of essential products and services to underserved segments of the population while at the same time creating more jobs and improving livelihoods.
‍
Within this theme, we invest in solutions that are transforming finance to serve individuals and businesses better and promoting the adoption of technology and digitisation to increase their productivity.

go to people theme

go to planet theme

portfolio impact

1.3m

SMEs supported to increase productivity

1.8bn

USD

of loans disbursed to SMEs

25k

businesses with improved customer communication

154k

small merchants provided with better payment solution

Impact Objectives

Improving access to and use of responsible financial services for individuals and SMEs

Promoting an inclusive and sustainable financial sector

Fostering the adoption of technology in financial products and services

Promoting financial health and literacy

Theory of change

Problem

One out of three adults globally still do not have a bank account (Worldbank, 2017)
‍
SMEs are facing a formal finance gap of USD 5.2 trillion p.a. (Worldbank, 2021)

Solution

Technological upgrading across the financial value chain

Digital is key to increasing access

Focus on responsible practices to minimize risk of negative impacts

Innovative solutions to unlock sources of capital

Outcomes

Increased individual productivity and economic opportunities leading to improved livelihoods and resilience

Higher business productivity and increased operational efficiency

Economic inclusion of SMEs

Sustained and new employment

Business model

Tech-driven financial services providers targeting underserved segments of the population and small businesses

Innovative financial value chain operators and service providers offering enabling tools

Digital lending platorms

Portfolio

See Lightrock's productivity portfolio

Main SDGs and targets

1.4 access to basic services, new technology and financial services, including microfinance
9.3 increase access to financial services for SMEs and their integration into value chains

Additional SDGs

Impact Objectives

Transforming inefficient legacy sectors by fostering better business models and improved infrastructure

Increasing business productivity and efficiency through the adoption of technology and digitization

Theory of change

Problem

There is a widespread lack of business productivity hindering economic growth and social progress

Solution

Promote technology, big data, artificial intelligence (AI),automation and digitization to enable economic inclusion and sustainable productivity

Take an ecosystem approach to drive value creation and foster innovation

Outcomes

Increased business efficiency e.g., by allowing employees to do more productive and value enhancing tasks

Secondary positive outcomes for end consumers, employment, livelihoods

Optimized resource management and capital allocation

Business model

Tech-enabled tools to support efficient business operations

Enabling businesses that promote automation, big data, AI and digitization as a force of good

Portfolio

see all productivity portfolio

Main SDGs and targets

8.2 achieve higher levels of economic productivity through diversification, technological upgrading and innovation

Additional SDGs

productivity

investment thesis

portfolio impact

1.3m

1.8bn

25k

154k

recent news & updates

Heading

Heading

Heading

Heading

sign up to our newsletter

recent
news & updates