Digital Micro-Finance & E-Marketplace for Women’s Co-operatives – 2022

Date: April 2025
Location: Monaragala & Hambantota Districts, Sri Lanka

Overview
MPF’s Poverty Alleviation team has rolled out a smartphone-based micro-finance app bundled with an e-marketplace, enabling women’s co-operatives to access small loans, digital payments, and direct-to-consumer sales channels.

The Challenge

  • Credit constraints: Rural women lack collateral and face prohibitive interest rates.

  • Market isolation: Artisans and food producers rely on middlemen who capture most margin.

  • Digital divide: Low digital literacy and intermittent mobile connectivity.

Our Approach

  1. App Development & Pilot Launch

    • Created an Android app with group-lending workflows, biometric login, and mobile-money integration.

  2. Co-op Onboarding & Training

    • Trained 150 women across 10 co-ops on app usage, digital catalog creation, and basic smartphone skills.

  3. Marketplace & Logistics

    • Partnered with two logistics providers to offer door-to-door delivery and reverse pick-up for returns.

Implementation Highlights

  • Beta launch in 10 Grama Niladhari divisions, with offline caching for low-coverage zones.

  • Biometric KYC integrations reduced onboarding time from 3 days to under 30 minutes.

  • In-app chat connects co-op members with MPF support agents in real time.

Progress to Date

  • Rs. 1.2 million disbursed in 75 group loans, averaging Rs. 16,000 each.

  • 80% of orders fulfilled through the in-app marketplace; average basket size Rs. 1,100.

  • Digital transaction adoption rate at 65% among active members.

Expected Outcomes

  • Scale to 500 women and Rs. 10 million loan disbursements by year-end.

  • Expand marketplace to 50 product categories, including agro-produce and handicrafts.

  • Integrate with national e-commerce platforms for broader reach.

“With this app, I can grow my spice business online—and my group no longer worries about high loan rates.”
— Ms. Fernando, President, Siyambalanduwa Women’s Co-op