What is MICROWD?
Trust beats distrust every time. MICROWD is a fintech platform designed to empower extraordinary women entrepreneurs across Latin America by connecting them with impact investors. It’s all about generating social impact while also delivering economic profitability. Through MICROWD, investors can finance women-led businesses in countries like Nicaragua, Peru, Mexico, Costa Rica, and Uruguay — improving communities and changing lives through the power of capitalism.
Main Benefits of MICROWD
Here’s why MICROWD stands out:
- Presence in five Latin American countries, including Nicaragua and Peru.
- Over 1,000 women entrepreneurs supported in Puno, Peru — a city perched high above sea level near the sacred Lake Titicaca.
- Businesses have increased their income by up to 400% thanks to social microcredit.
- Average loan size around $400, with a max of $2,000 per entrepreneur.
- Only 2% delinquency rate — showing strong repayment discipline.
- Interest rates for borrowers average 25%, while investors earn around 8% returns.
- Flexible repayment terms decided by the entrepreneurs themselves.
- 1,691 loans granted in 2017, with a goal of 8,000 loans and €5 million financed in the following year.
The Origin Story of MICROWD
MICROWD was born from a real need spotted during a 2012 trip to Nicaragua by entrepreneur Alejandro de León. Working with the NGO MAYAS (Maestros y Alumnos Solidarios), he saw firsthand how women in Chinandega struggled to access financing. Only 2% of the population had access to non-banking loans, and those loans came with sky-high interest rates of 48% plus fees. Alejandro realized there had to be a better way — and thus MICROWD was created to break this vicious cycle of poverty.
How MICROWD Works
MICROWD operates as a community of investors, mainly based in Spain, who fund women entrepreneurs in Latin America. Investors receive an 8% return on their investment and can even connect directly with the women they support via Skype or WhatsApp — making the whole process personal and transparent. The platform charges a modest 2% net from interest and allocates up to 4% for operational costs, ensuring sustainability without burdening borrowers.
Expanding Horizons and Future Plans
What started as a pilot project has grown into a limited company with teams in Spain and Nicaragua, employing young professionals averaging 27 years old. MICROWD is now eyeing expansion into other countries like Guatemala, Peru, Kenya, and Ghana. The goal? To find democratic societies with sociopolitical stability and attractive profitability rates that balance country risk — all while promoting microfinance as a tool for social change.
Project Impact and Sustainable Development Goals (SDGs)
- SDG 1: No Poverty — by breaking the cycle of poverty through microloans.
- SDG 5: Gender Equality — empowering women entrepreneurs as social engines of their communities.
- SDG 8: Decent Work and Economic Growth — supporting small businesses and increasing incomes.
- SDG 10: Reduced Inequalities — providing access to finance for the unbanked.
- SDG 17: Partnerships for the Goals — connecting investors and entrepreneurs globally.
Why Focus on Women Entrepreneurs?
Women are often the backbone of their communities — the true social engines. Alejandro de León points out that 76% of women borrowers reinvest part of their profits into their children’s education, mainly buying school supplies. This ripple effect means that financing women doesn’t just grow businesses; it nurtures families and future generations. MICROWD’s approach recognizes this powerful multiplier effect, making impact investment not just responsible, but downright transformative.
