Kafalat iSME

What Kafalat iSME does

Kafalat iSME is the iSME Programme, a USD 30 million initiative launched in 2015 under KAFALAT SAL (a Lebanese financial institution) and co-funded by the Government of Lebanon and the World Bank. The programme provides two core financial offerings to small and medium enterprises in Lebanon: iSME Grants, which are non-repayable funds supporting business development and growth initiatives, and Equity Co-Investments, under which the programme invests alongside other investors to provide growth capital to SMEs. It also operates a publicly accessible Portfolio interface that tracks grants and equity co-investment records, and is accessed entirely through a web-based application portal at kafalatisme.com.lb.

The business model is non-commercial: beneficiaries do not pay for grants or co-investment participation, and the programme generates no disclosed revenue — capital is sourced exclusively from its two institutional funders. Distribution is direct and digital-only, with SMEs registering and submitting grant applications through an online portal; as of the most recent data, the programme has temporarily suspended new application submissions pending processing of its existing pipeline. The programme's customer base is horizontally segmented around Lebanese SMEs across industries that face capital-access constraints, with no vertical specialization, no named customer logos, and no enterprise-tier segmentation.

The underlying technology stack is minimal — a website and login/registration system rather than a proprietary platform — and there is no evidence of AI/ML, API, mobile app, or integration capabilities. Operating geography is single-country (Lebanon), and the organisation is staffed by a small team (1-10 employees) consistent with a programme administration unit rather than a scaled commercial enterprise. Strategic positioning is anchored in its state-backed and World Bank-backed mandate, which functions as the programme's primary differentiator versus alternative Lebanese SME financing channels.

Name

Kafalat iSME

Legal name

KAFALAT SAL

Website

https://kafalatisme.com.lb

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

1–10 employees

Short description

Kafalat iSME is a USD 30 million Government of Lebanon and World Bank-funded programme under KAFALAT SAL that provides non-repayable grants and equity co-investments to small and medium enterprises in Lebanon through a direct online application portal.

Ownership category

akta.pro rank

Product category

SME Development Finance

NAICS

Grantmaking and Giving Services (81321)

akta.pro primary industry

SME, Microfinance & Financial Inclusion Facilities (BPADACAI)

akta.pro secondary industries

SME & Entrepreneurship Development (Trade-Linked) (BPADAMAE), Monitoring, Evaluation, Learning (MEL) & Reporting for Donor Programs (BPADAOAL), Donor Coordination, Monitoring & Evaluation (MEL) Programs (BPADABAN)

Keywords

• SME grant funding
• Equity co-investments
• SME development finance
• World Bank SME program
• Lebanon SME support

Headquarters

HQ city

Beirut

HQ country

Lebanon

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D

Revenue model

1. Grants Programme: The iSME programme provides grant funding to qualifying SMEs. These are non-repayable funds awarded to support business development and growth initiatives. The programme also manages an equity co-investment scheme where it co-invests alongside other investors in SMEs.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Kafalat iSME is a programme that provides non-dilutive grant funding and equity co-investments to small and medium enterprises (SMEs) in Lebanon. It is a USD 30 million initiative funded by the Government of Lebanon and the World Bank, operating under KAFALAT SAL, designed to expand access to growth capital for Lebanese SMEs.

Product overview

Kafalat iSME is a program by KAFALAT SAL offering financial support to SMEs in Lebanon through two primary offerings: iSME Grants (direct financial grants for eligible small and medium enterprises) and Equity Co-Investments (equity capital investment alongside other investors). The program also provides a Portfolio platform to track and manage grants and equity investments. The ecosystem is built around an online application portal where SMEs can apply for grants and register for the program.

Differentiator

Problem solved

Functional benefit

Products and services

• iSME Grants

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators1 record

Recent moves5 records

Expansion highlights2 records

Direct peers

• Flat6Labs: MENA early-stage investor and accelerator running seed programmes across the region. Comparable as a regional SME/early-stage equity co-investment mechanism with structured deal flow, mirroring iSME's equity co-investment track and SME focus.
• SEAF (Small Enterprise Assistance Funds): Global SME impact investment manager providing equity and quasi-equity to small enterprises in emerging markets. Comparable on blended-finance SME investing and co-investment alongside development financiers.
• Berytech: Lebanese ecosystem builder and SME/startup support organisation offering grants, incubation, and investor matchmaking to Lebanese SMEs. Highly comparable to iSME on geography (Lebanon), target customer (SMEs), and grant-plus-support value proposition.

Regional players

• Tamweelcom: Jordanian microfinance and SME lending institution serving underserved SMEs. Comparable as a MENA development finance institution providing tailored capital to SMEs in a similarly challenging macro environment.
• Banque du Liban (BDL) SME Circular 331: Lebanon's central bank historically operated subsidised SME lending windows (e.g., Circular 331). Comparable as a Lebanese public-sector SME funding mechanism with overlapping geographic and beneficiary focus.

Broad incumbents

• Consultative Group to Assist the Poor (CGAP): Global resource centre on financial inclusion housed at the World Bank. Comparable as a World-Bank-affiliated body advancing SME/microfinance funding models and donor coordination relevant to iSME's mandate.
• Kafalat SAL: The parent Lebanese development finance institution providing loan guarantees to SMEs. iSME is a programme under Kafalat SAL, so the parent is the most directly comparable entity in terms of SME finance mandate and Lebanese institutional context.
• International Finance Corporation (IFC): World Bank Group's private-sector arm providing equity, debt, and blended finance to SMEs in emerging markets. Comparable as a larger institutional actor deploying donor-anchored capital alongside private co-investors in development contexts.
• European Bank for Reconstruction and Development (EBRD) - SME Finance: Multilateral development bank running extensive SME finance and private equity programmes. Comparable on the donor + co-investor blended-finance structure applied to SMEs in transition economies.

Others

• Lebanese Economic Association (LEA) / local SME policy bodies: Lebanese policy and research bodies shaping the SME support ecosystem in which iSME operates. Relevant as adjacent ecosystem participants that influence programme design and SME pipeline development.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat2 records

Key risks6 records

Key highlights5 records

Customer concentration

• LinkedInlinkedin.com/company/isme-programme

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments8 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kafalat iSME