Pakistan Microfinance Investment Company – PMIC has launching its first round of Challenge Fund. The purpose of the Challenge Fund is to achieve PMIC’s triple bottom line mandate by offering a competitive environment to participating organizations in deploying innovative product verticals and business models involving both financing and technical assistance. The Challenge Fund shall open up opportunities for PMIC to make equity investments in different Financial Technology platforms in the longer run. The organizations which win the Challenge Fund award, could later be made part of PMIC’s Institutional Development Fund to further build their systems and strengthen their governance structures, so that they could eventually graduate to become PMIC borrowers (non-bank MFIs). The facility shall also benefit PMIC in establishing new revenue streams and bring further diversification in the existing business model.
PMIC has launched the first round of Challenge Fund for Small farmers to help them get access to finance and other value addition services through Ag-tech/microfinance providers. Under the Challenge Fund facility, PMIC has called from proposals from Ag-tech/MFPs which provide financial and non-financial services to small farmers. The non-financial services offered by applicant should focus on trainings and capacity building that help them impart good crop cultivation practices. Technology and good agri practices should be at the heart of the business models proposed using, but not limited to, trainings of farmers, satellite imagery, soil testing, efficient water, fertilizer and pesticide usage, linkages with input providers and facilitating farmers in crop sales, which ultimately result in lower input costs, increased crop yield and higher incomes of the farmers.
Challenge Fund Round 1: Thematic Area
The goal of the challenge fund is to provide relevant market players an opportunity to pilot or scale interventions on different thematic areas related to financial inclusion, sector development and benefiting end clients. PMIC invites financial and technical proposals in the following thematic area for Challenge Fund round 1:
“Accelerating access to finance and increasing income of small farmers”