Babyloan Annual Report 2013

European leader in online philanthropic lendingAnnual Report 2013

BABYLOAN 2

Editorial :

Dear all,

The early Babyloanians might well remember our first year together. By the end of 2009, we were proud to announce that our philanthropic lending cumulative production had reached €490,000. Little did we know then that we would come so far as to achieve a total lent amount of nearly 10 million at the end of the 2013 fiscal year. What a long way we’ve come…Yet the most impressive figure is not that of the amount of the loans, but rather the number of projects that you contributed to fund. For the past 10 years, 32,000 projects have been financed on the 90 French crowdfunding platforms. 17,000 of them were funded by you and only you on Babyloan.

We’ll keep making our way together. The path that we chose to follow is not always straight, and it is not the easiest one but from all of their 26 years of average age, the Babyloan team apply themselves daily and their fantastic work allows us to keep growing year in and year out.

The community’s involvement in Babyloan’s future has definitely been the keynote of 2013.Babyloan has become a forerunner in the crowdfunding field by allowing its lender members to use another crowdfunding platform and become shareholders. You were just under a hundred to raise your hand and acquire a stake in our social business during our latest capital increase.The funds we raised and the news of the recent capital subscription by the Caisse des Dépôts et Consignations (the French Deposit and Consignments Fund) has strengthened our credibility and power to act, leading us towards new milestones in terms of our expansion and social impact.

Our goal is to keep building new partnerships in regions of the world where we have not yet settled. In 2013 Babyloan formed new partnerships, allowing us to display eco-friendly projects in Peru as well as projects in Haiti, Bosnia and Morocco, countries that we had long wanted to establish contacts with.

2014 will be the year of change, starting with redesigning our visual identity and reworking our website, as you will see sometime around next September. We are proud to give you an exclusive preview of our brand new logo. It features our

name in a more contemporary font, and the central orange O spirals out after it has come full circle. This logo is symbolic for the way out of poverty that microcredit paves day after day. We chose to favor the color orange that stands for trust and serenity.

There is an old Chinese saying that goes “hope is just like the paths of the Earth: people create it going forward”. You all are going forward on the path towards development that is built through entrepreneurship. The whole Babyloan adventure is an incredible story, the story of the creation of one of the most innovative tools in the history of impact investing.

More than any other, the year 2013 has shown that our adventure is and will always be your adventure. I can already picture the event we will set up to celebrate our 6 years of existence, our 30,000 members and the 10 million landmark. All of it will soon be possible thanks to you…

Arnaud Poissonnier and the Babyloan team

3 ANNUAL REPORT 2013 - BABYLOAN

Table of contents

Part 1 : BABYLOAN, innovation serving microcredit...............................................................4Babyloan in numbers.....................................................................................................................................5 Babyloan, a crowdfunding platform dedicated to microcredit..................................................6Babyloan : social business, social impact.............................................................................................7How does it work?..........................................................................................................................................10The 2014 team..................................................................................................................................................11Our social shareholders...............................................................................................................................13Our institutional partners............................................................................................................................162013 Highlights................................................................................................................................................17Babyloan in the press....................................................................................................................................18Babyloan, a key operator in its ecosystem..........................................................................................19

Part 2 : BABYLOAN, social business in the service of fundraising......................................20Fundraising, getting the general public involved............................................................................21Fundraising, getting companies involved..........................................................................................24Fundraising, getting students involved...............................................................................................28Solidarity at School, the Babyloan Networks association educational project...............29

Part 3 : BABYLOAN, a stakeholder in microfinance..............................................................30A map of our global presence...............................................................................................................31Babyloan, intermediation and the lending system.......................................................................32Babyloan’s partners: the microfinance institutions.....................................................................34

Part 4 : Financial statements......................................................................................................41

BABYLOAN, L'INNOVATIONAU SERVICE DU MICROCRÉDIT

BABYLOAN, INNOVATION SERVING MICROCREDIT

BABYLOAN IN NUMBERS

16 000MICROENTREPRENEURS

83%/17% Women / Men€432 Average microcredit amount4 new Haiti/Peru/Bosnia/Morocco10 months Average loan maturity31% Rural projects9 days Average project turnover

27 000BABYLOANIANS

€70 Average Loan Amount€100 Average basket€115 Average amount invested5000 New numbers in 201370%/30% Women / Men€14 Average annual commission1 loan Every 10 minutes3,4 Average number of supported projects per member

7 000 000€TOTAL PHILANTHROPIC LOANS

€2,200, 000€ In 2013100% repayment rate

SOLIDARITY – AFFORDABILITY – ALLOCATION - EMPOWERMENT

20092010 2011 2012

2013

6

10

15

12

IMF

IMF

IMF

IMF

IMF

17

2009 € 500 0002010 € 1 300 0002011 € 2 750 0002012 € 4 840 0002013 € 7 065 000

Total loans

BABYLOAN IN NUMBERS

16 000MICROENTREPRENEURS

83%/17% Women / Men€432 Average microcredit amount4 new Haiti/Peru/Bosnia/Morocco10 months Average loan maturity31% Rural projects9 days Average project turnover

27 000BABYLOANIANS

€70 Average Loan Amount€100 Average basket€115 Average amount invested5000 New numbers in 201370%/30% Women / Men€14 Average annual commission1 loan Every 10 minutes3,4 Average number of supported projects per member

7 000 000€TOTAL PHILANTHROPIC LOANS

€2,200, 000€ In 2013100% repayment rate

SOLIDARITY – AFFORDABILITY – ALLOCATION - EMPOWERMENT

20092010 2011 2012

2013

6

10

15

12

IMF

IMF

IMF

IMF

IMF

17

2009 € 500 0002010 € 1 300 0002011 € 2 750 0002012 € 4 840 0002013 € 7 065 000

Total loans


In 2013, Babyloan celebrated its 15th birthday and registered a 30% raise of its lent amount which laid the ground suppoting an even greater number of microentrepreneurs.

BABYLOAN 6

Babyloan, a crowdfunding platform dedicated to microcredit

Babyloan is the first philanthtropic microcredit crowdfunding platform in Europe. We provide the general public with microcredit projects in France and all over the world. Our website facilitates the lending process, from private individuals to microentrepreneurs who are engaged in self-subsistence activities.

Babyloan has been a pioneer amongst crowdfunding platforms as soon as 2008. We saw the incredible potential of this new approach to fundraising in the context of the financial institutions’ increasing demand for funding. Solidarity, affordability, allocation: conforming to those key values, we made it easy for anyone to allocate resources to whomever they choose in one of our 15 countries of operation.

The Internet user simply has to navigate our website and choose to support a microentrepreneur’s project according to various criteria (the microcredit amount, the geographic area or the sector of activity). The project profile includes a description of said activity and of the goals that the granting of a loan would serve to achieve. The web user can directly lend online from minimum of €20 and gets repaid monthly on his Babyloan account.

The strength of our modus operandi lies in the complete assurance for the lender that his money is entirely and in all accountability transferred to the microentrepreneur. Transparency is one of Babyloan’s and crowdfunding in general’s greatest features.

75% of the population is excluded from the traditional banking system

Microcredit is a low amount credit bearing interests granted to microentrepreneurs who do not have access to traditional banking services. It can be granted to individuals as well as groups –each member of the group being a guarantee for the others.

In 2013, 78 million euros were raised in France on crowdfunding platforms.

Of these 78 million, 70% were raised through lending platformssource : Baromètre du crowdfunding

Crowdfunding consists in providing collective financial support to a chosen project. Funding can assume various forms, such as donation, lending (bearing interests or not), or capital investment. In 2013, more than 650,000 people in France got involved and contributed to funding projects. This financing method was born in the United States in the early 2000’s and grew along with the boom of the Internet, using the web to establish a link between project holders and investors.


Babyloan : social business, social impact

Babyloan’s intent is to put social matters at the heart of economy and to play a part in humanizing capitalism.

Our founders Arnaud Poissonnier and Aurélie Duthoit committed to the social business model that presided to establishing Babyloan’s articles as a Société par Actions Simplifiée (SAS), a structure that is similar to the American limited liability company.

• Limited profit : Babyloan reinjects the money into the social objectives of the company and the shareholders are only granted a negligible part of its potential profits.

• Employee stock ownership plan and governance assured shareholding institutions and NGOs. • Salaries are limited and fit within a 1 to 5 ratio between the lowest and highest salarysalaire.

The business model

Babyloan has been growing steadily since its creation in 2008. By the end of 2013, Babyloan could announce a gross revenue of €240,000. The goal for 2014 is to reach €300,000, which would translate as a 30% increase over the year.

A full transparency policy

When you decide to loan €100, you pay an additional €6 support commission to Babyloan, and the microentrepreneur is effectively granted the whole of your €100. Babyloan does not take a cent from that money to cover its operating costs which are borne by additional income sources -which will be discussed later on in this document- and by capital investments from the part of Babyloan’s social shareholders.

Social economics employ 10% of the French workers, which represents 2.3 million people within 217,000 institutions

The concept of social business was created by Muhammad Yunus (laureate of the Nobel Peace Prize in 2006) when he set up the Grameen Bank. A social business is a non-loss, non-dividend company whose aim is to fight poverty. Profits are entirely reinvested in the business itself, but investors may retrieve their initial stakes at their wishes.

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Babyloan’s revenue comes from various sources :

• About 50% of Babyloan’s income is made up of the commissions paid by the Internet users (average commission of 5,40% VAT).

• An 18% is gathered through invoicing solidarity challenges dedicated to the clients or employees of our partner companies.

• 20% of the income stems from our partner MFIs, who pay a fee to gain access to our platform (average management costs of 0,85%, paid on a quarterly basis).

• The remaining 12% is composed of grants, of the Babyfund fund (Babyloan’s accessory investment fund, under Ecofi’s management, and for which Babyloan receives 0,75% of the outstanding), as well as other billings.

2009 2010 2011 2012 201320142008

337

93

75

140

300

190

k€

k€

k€

k€

k€

k€

k€

Revenue growth since 2008

Babyloan’s cost structure’s main item is payroll, which makes for more than 75% of operating costs. In 2013, salaries and fringe benefits amounted to €575,000.

€ 300,000 Capital subscription by the Babyloan community

Babyloan opened itself up to investment from the Babyloanians, the first initiative of the kind in the history of crowdfunding platforms. The rallying of more than 30,000 community members allowed Babyloan to exceed its fundraising goal, and about a hundred of the website users became shareholders. We are encouraging the penetration of the crowdfunding system in the social business governance model.

*

forecast

Frederic Trannoy has been lending on Babyloan since 2011. He became a Babyloan shareholder during the Anaxago fundraising campaign in December 2013.

“I was first taken in by the concept of microcredit long before I’d heard about Babyloan. I really started taking an interest in this type of humanitarian funding through an Indian association and the media coverage of Muhammad Yunus.

To my mind, crowdfunding and microfinance make a perfect match. When When €500 in France represent €5,000 in Cambodia, it is

obvious that the impact of your action is intensified, and the leverage effect is huge. The fact that each and every one is able to invest and make a difference in a project holder’s life brings pragamatism and efficiency to the table.

When Babyloan contacted me and offered me the opportunity to become a shareholder, it immediately caught my attention, especially since the whole process was going through Anaxago, another crowdfunding platform. I really believe in the various forms of collaborative governance, and I have invested money, of course, but I want to keep investing myself and put my contacts to good use, particularly in relations to the development of corporate social responsibility projects within my company. The very structure of Babyloan along with the openness and availability of the Babyloan team also was an important factor in my involvement.

The humanistic spirit that reigns within this social business is in complete adequacy with the concept they are pushing forward. This is just the beginning of the Babyloan adventure.


© Frédéric Trannoy

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How does it work?

Babyloan, micro credits, great stories

I choose themicroentrepreneur I want to support...

FROM A HUNDRED ONLINE PROJECTSIN 15 COUNTRIES

1

I set the amountthat I want to lend

them

FROM A MINIMUM OF20 EUROS

2I lend again or get all my money back

INCREASED SOCIAL IMPACT

4

I get repaid monthly by the microentrepreneur

100% LOAN REPAYMENT RATE OVER 5 YEARS

3Babyloan, micro credits, great stories.

DU CÔTÉ DESPARTENAIRES

TERRAIN

DU CÔTÉ DELA COLLECTE

Quentin Bévan

Alix Thépot

Alexandra KozakCommunity

Manager

Alexis Chailloux

ArnaudPoissonnier

MANAGEMENT

Céline Gourlay

CEO and Founder

Administrative andFinancial Manager

Business PartnershipsManager

WebmarketingManager

Press relationsManager

MFI OperationsManager

MFI Analyst

Violette Cubier

Elise Peruzzo

MFI RELATIONS

TEAM

FUNDRAISINGTEAM

The 2014 team


Arnaud Poissonnier : CEO and founderArnaud obtained a diploma to become a notary and started his career as a wealth manager, a job he describes as “technically fascinating, but humanly boring”. After working for several notable banks, he joined OBC and came across ACTED, an NGO supported by OBC since the 2004 tsunami.

He went to Tajikistan one year later in order to support the ACTED staff in the field. He was fascinated by the humanitarian work he discovered and decided to work for ACTED, in order to help them construct a microcredit network. He contributed to the creation of the Microfinance Institution Oxus in 2005. Building on these experiences, Arnaud Poissonnier decided to create his own company: he launched Babyloan along with Aurélie Duthoit at the end of September 2008.

We miss her: AurélieAurélie graduated from the EDHEC Business School in 2004. In September 2008, she launched Babyloan along with Arnaud Poissonnier, an initiative that saw her win the title of 2009 EDHEC Entrepreneur of the Year. Early in her career, a one-year internship in Ecuador for the NGO Heifer (specialized in microcredit) allowed her to see how microfinance improves a woman’s life. She is the mother of 3 children and has a genuine entrepreneur spirit. She now lives in Nantes and focuses on her personal projects but keeps a shrewd eye on Babyloan’s progress.

BABYLOAN 12

DU CÔTÉ DESPARTENAIRES

TERRAIN

DU CÔTÉ DELA COLLECTE

Quentin Bévan

Alix Thépot

Alexandra KozakCommunity

Manager

Alexis Chailloux

ArnaudPoissonnier

MANAGEMENT

Céline Gourlay

CEO and Founder

Administrative andFinancial Manager

Business PartnershipsManager

WebmarketingManager

Press relationsManager

MFI OperationsManager

MFI Analyst

Violette Cubier

Elise Peruzzo

MFI RELATIONS

TEAM

FUNDRAISINGTEAM

They are off to new adventures : Mathias Faizand, Sarah Lenoble and Mariella Aritzu are going their own new way in 2014! They were respectively replaced by Alix Thépot, Violette Cubier and Céline Gourlay. We wish them all the best on their new journeys.


Our shareholders

• NGOs and Foundations

ACTED

“In 2009, we identified a number of shared areas of interest between the Foundation and Babyloan, and we intended to go further in those directions.

We have similar ambitions: we want to build long term partnerships with medium sized, mostly rural operators who support projects held in majority by women in developing countries where social impact is maximized.

In the five years since the birth of Babyloan, we already count 4 common partners and 2 are still in the process of being agreed on.

We are also involved when it comes to fundraising. We promote the platform among the different Caisses Régionales du Crédit Agricole (the Crédit Agricole local entities on a regional scale). We have set up a number of solidarity challenges in partnership with Babyloan, the most recent of which in the Centre-Est region.

Babyloan’s assets are its diversified portfolio and great capacity to establish new partnerships while maintaining a 100% loan repayment rate through finely tunes processes. We naturally take great interest in the promising future of crowdfunding as a supplementary source of funding for the Microfinance Institutions.”

Feedback from Philippe Guichandut, Head of Development and Technical Assistance at the Grameen Crédit Agricole Foundation :

© Fondation Grameen – Crédit agricole

BABYLOAN 14

• Banks and Public Financial Institutions

Just after Fleur Pellerin, former Minister delegate for the Digital Economy, brought in a draft bill that made France the spearhead of crowdfunding in Europe, the Caisse des Dépôts et Consignations announced that it would acquire a €300,000 stake in Babyloan in 2014.

Feedback from a representative of the Caisse des Dépôts et Consignations :

“The Caisse des Dépôts et Consignations has always supported small businesses in their quest for funding while fulfilling its mission of accompanying national and local public policies.“

One of the highlights of 2013 was Fleur Pellerin’s bill on crowdfunding. The Caisse des Dépôts et Consignations has naturally followed suit, taking into account this policy as well as the ever-growing public opinion’s interest in this new approach to funding.

As a European leader in an emerging sector, Babyloan perfectly fitted our support policy standards in terms of :• Its interest-free lending operations targeting microentrepreneurs• Its experience in the field of fundraising and appealing to the general public• Its secure lending mechanism, that protects the online lender• Its impact in terms of creating business opportunities

Our mission also consists in arousing the interest of private investors and to pinpoint growing businesses in booming sectors.The key to Babyloan’s success is its ability to put crowfunding to use in order to serve the social impact of microcredit.”

• Philanthropic Private Investors

Arnaud Poissonnier (cofounder), Aurélie Duthoit (cofounder), the Baelen, Holweck and Dodin families, the Femmes Business Angels network as well as about two dozen other investors who share Babyloan’s values.

The Femmes Business Angels network has been accompanying Babyloan in its growth since 2012. Catherine Lozano and Morgane Rollando, two women whose dedication to Babyloan is the symbol of their heart-felt interest towards microfinance, give us their opinion on our work.

• The Strategic Committee

This is Babyloan’s body of decision makers. The committee holds meetings on a quarterly basis to decide on all strategic aspects of the project. It is made of 15 people: part of them represents the social investors and the others are reputed professionals of the social sector. The project founders, partner NGOs and banks hold a major part of the votes in this strategic committee.


Members of Women Business Angels Shareholders Babyloan © Babyloan

Catherine Lozano - A Babyloan shareholder since 2009 through the Femmes Business Angels network

“Arnaud Poissonnier and Aurélie Duthoit came to meet us in 2012 to talk about Babyloan and convince us to make it our first social business partner. At the very heart of the Babyloan project was the idea of associating a crowdfunding platform, the very epitome of growing niches for the past two years, and a social mission consisting of supporting microentrepreneurship -especially projects held by women- in developing countries. Counting on a community whose strong involvement was made clear during last December’s capital increase, on an original project in the booming field of solidarity economy and on a strong and highly motivated team, Babyloan holds all the cards to reach the goals that the enterprise has set for itself.”

Morgane Rollando – CEO and founder of Synerfia – A Babyloan shareholder since 2009 through the Femmes Business Angels network

“I was searching for a way to give purpose to my money by lending in support of entrepreneurship, by calling up on a growth engine rather than hand-outs. This is why I chose to get involved with Babyloan. I want to believe in a model of solidarity economy that can also prove to be a sustainable one. Babyloan’s presence in France is strongly anchored both in the media and within an economic ecosystem that raises more and more interest from the public.”

Our institutional partners

• The Selection Committee

In the early stages of Babyloan’s construction, we decided to set up a committee made up of finance and microfinance experts in order to monitor the selection of our partner Microfinance Institutions. This committee provides Babyloan with wise and objective opinions about its new partners and therefore to guarantee that all partners are stable and efficient in terms of social impact. The committee members mostly come from powerful networks in the field of microfinance and quite a number of Babyloan’s partnerships were born at their initiative.

Here are the members of our committee, sorted by area of expertise :

Feedback from David Munich, Investment Officer at I&P Développement – member of our selection committee.

“The Babyloan selection committee gathers microfinance experts working in organizations from all over the world. These sessions are positively riveting, and they allow Babyloan to go forward establishing partnerships with the MFIs while relying on these experts’ professional opinions and their advice regarding who should be considered as a potential new contact. A crucial post in Babyloan’s strategy! The presence within this committee of the most important players in the field of financing makes it a strategic hub whose responsibility is engaged towards the Internet users and Babyloaniens. These experts are on a mission to get the general public acquainted with the workings of microfinance (another one of crowdfunding’s virtues!), and their skills are instrumental in giving Babyloan every chance to succeed.

In a personal capacity, I have learnt so much about parts of the world that I had not much knowledge of. It is a real pleasure and a thrilling experience to meet with the Babyloan team and other professionals of the field to give thought to the MFIs’ progress.Babyloan acted as a scout in the beginnings of European crowdfunding, and it has not always been an easy task. The Babyloan project gathers all the energies that will forge its success. Microfinance simply needs Babyloan and the Babyloanians.”

© I&P Développement

Aurélie De Fonvielle (permanent member) Priscilla Carpenter (deputy member)Philippe Guichandut Françoise Thiercelin Dominique Lachaut* David MunnichJean-Hubert Gallouët Marie Garnier* Franck Renaudin (permanent member) Camille Moureaux (deputy member)Michael Knaute(permanent member) Alexis Surun (deputy member)Snezana Jovic Sophie Vincent* Georgia Bertagna Anne-Charlotte Dupont-Lhotelain*

CREDIT COOPERATIF

GRAMEEN CREDIT AGRICOLEABN AMRORBSI&PHORUSKURT SALMONENTREPRENEURS DU MONDE OXUS NETWORK

PAMIGASYMBIOTICSETIMOSFORMER ANALYST AT BABYLOAN *Independent participation

BABYLOAN 16

CREDIT COOPERATIF

GRAMEEN CREDIT AGRICOLEABN AMRORBSI&PHORUSKURT SALMONENTREPRENEURS DU MONDE OXUS NETWORK

PAMIGASYMBIOTICSETIMOSFORMER ANALYST AT BABYLOAN


• Networking

Networking has been one of Babyloan’s priorities since its very first steps. We have focused on getting in touch with various partners in order to professionalize its approach, to broadcast its concept and contribute to structuring its activities.

• Awards and Recognition

The Finansol label: the Babyloan microloan obtained the Finansol label in 2009. This label certifies to the individual investor that their investment is used according to strict requirements of philanthropy and transparency. Since then, the label has been awarded to Babyloan every year for the loans granted by the Internet users.

The Social Company Approval: Babyloan was attributed the “Social Company” approval in June 2011 by the prefecture of the Hauts-de-Seine (French department). This approval is given to companies whose equity securities cannot be exchanged on regulated markets, and who have to meet specific criteria in regards to hiring and salaries. This label recognizes and rewards Babyloan’s management choices particularly the limitation of salaries, which all fit within a 1 to 5 ratio between the highest and the lowest.

This association gathers philanthropic backers who promote solidarity savings and finance. Since 1997, it has been issuing a label that distinguishes solidarity investment.

It unites business leaders whose objective is to

promote a new approach to entrepreneurship and support the creation of businesses and

employment opportunities.

This network of entrepreneurs is committed

to get the public acquainted with a new model relying

on values such as efficiency, responsibility, equity and durability, and that would

be applicable to both businesses and society as a

whole.

This association was created in 2003. It aims at promoting microfinance within the European Union as a new tool in the war on unemployment and social exclusion. They believe that the answer to some of today’s issues can be found in the development of microentrepreneurship.

Constituted of 130 microfinance organizations, this network applies itself to facilitating communication and data sharing between the European actors in the field of microeconomics.

Convergences 2015 is a think tank composed of about a

hundred European organizations. It promotes innovative

solutions to reach the Millenium Development Goals.

The Mouvement des Entrepreneurs Sociaux (Mouves, the Social

Entrepreneurs’ Movement) is the voice of a group of social

entrepreneurs whose aim is to develop and structure social and

solidarity economics in France.

BABYLOAN 18

2013 Highlights

The Caisse des Dépôts et Consignations acquires a stake in BabyloanCapital investment by a hundred lenders through the Anaxago platform (crowd equity)

Milestone : €7 million lent on Babyloan16,000 supported projectsNew arrival: projects from Haiti with ID MicrofinanceSanofi Solidarity Challenge- 231 supported projects

New arrival: projects from Morocco with INMAA

THE RISE, student Solidarity Challenge15 contender campuses, €43,000 collected.

National Challenge/ La Révolution Solidaire

(Changing the world through Solidarity)

€230,000 collected, 530 supported projects

€230,000 collected, 530 supported projects.

Event in the Bonobo stores€1 loaned per bought item

New arrival : projects from Peru with Fondersurcopromoting environmentally responsible agriculture and renewable energy Babyloan celebrates its 5 years of existence

New arrival: projects from Bosnia with

MIKRA

Launch of the crowdfunding platforms

consultation processwith French Minister Fleur Pellerin

Groupe Seb Solidarity Challenge237 supported projects

Crédit Agricole SA Solidarity Challenge104 supported projects

Résidence Méditerranée Solidarity

Challenge83 supported projects

Lauch of the ESS government billheralded by French Minister Benoît Hamon

TV broadcast on Envoyé Spécial1,000 new members

Marketing campaign “I confess to investing

my money overseas”

CGG Solidarity Challenge93 supported projects

Milestone : € 5 million lent on Babyloan

Alstom Solidarity Challenge165 supported projects

To Do Today Solidarity Challenge 37 supported projects

January

February

June

September

November

March

August

October

December

2013

Babyloan in the media


« “Crowdfunding: all for one!” Envoyé Spécial – February 2013

“Crowdfunding, the ripening seed.” Libération – February 2013

“Babyloan mocks Jerôme Cahuzac’s confession.” Itélé – April 2013

“Solidarity 2.0: Maria Manuela received a microcredit thanks to Babyloan.” Marie-Claire – May 2013

“European leader in online solidarity microlending, Babyloan provides web users with a new approach to philanthropy.” Les Echos – June 2013

“Crowdfunding, investing in SMBs through the Internet.” Le Monde – July 2013

“Reasons to hope: Focus on Arnaud Poissonnier, founder of Babyloan.” Le Figaro – August 2013

“Babyloan, 5 years of crowdfunding.” France Inter – September 2013

“Over a period of 5 years, Babyloan’s 26,000 members have loaned more than 6,5 million euros to fund projects in 15 countries.” La Tribune – October 2013

“Babyloan launches the second edition of its Solidarity Challenge.” BFM Business – November 2013

“Babyloan and the Social Entrepreneurship Student Federation challenge the student organizations: 2 days to collect as much money as possible to lend to microentrepreneurs all over the world.” France Info – November 2013

“The Babyloan website starts its “Révolution Solidaire” operation: for 10 days, web users navigating a dedicated website are encouraged to become “Babyloanians” and lend money to microentrepreneurs in France and in the world.” La Croix – November 2013

Babyloan has been promoting a new form of digital solidarity through philanthropic lending for five years now, and we have wanted to make ourselves known by and through the media from the very beginning. The display of the thousands of microentrepreneurs’ projects supported by the Babyloan community has caught the attention of many journalists coming from all types of media, from newspapers to television as well as the online press or the radio.

Since 2008, Babyloan has been the object of more than 2,000 publications in various media :• about a dozen appearances in the television news• about 50 radio broadcast mentions• hundreds of articles and interviews in the best known national newspapers

This visibility has also been a way to ascertain Babyloan’s credibility and influence on the institutional stage. We have emerged as a major protagonist in the crowdfunding and solidarity economics sectors, and as the natural choice interlocutor of the competent authorities in these fields.

«

BABYLOAN 20

Association Financement Participatif France

The Financement Participatif France Association (France Crowdfunding Association). The Financement Participatif France Association gathers the fifty odd existing crowdfunding platforms in France. FPF’s objective is to publicize the major feature of crowdfunding and to spark an institutional debate while guiding the public authorities in their reflection on these new stakes. Babyloan is a founding member of FPF and speaks for philanthropic lending in the crowdfunding planet.

Babyloan on the platform TousNosProjets.bpifrance.fr In 2013, a new online platform has been created to encourage the rise of crowdfunding in France and submit to the web users an array of projects to support on various crowdfunding websites. This whole process started at the initiative of Bpifrance who offers to establish a link between the web users and the projects published on all the

partner crowdfunding platforms, via a single dedicated search engine. With this partnership with Bpifrance, Babyloan rose as a key operator in the field of philanthropic lending and has been able to put up microentrepreneurship projects to support on a third-party website.

© Babyloan

Babyloan, a key operator in its ecosystem

Babyloan, an entity that carries regulatory weight

Babyloan is one of the more experienced French crowdfunding platforms and is the only one to benefit from the Finansol label and the “Social Company” approval.

Babyloan therefore stands at the cross between solidarity economy and digital economy, two fields of activity that are very distinct yet complementary. Arnaud Poissonnier, founder of Babyloan, is a recognized expert who has the ear of all the main actors of the sector.

He very regularly speaks up in the media and in various institutional events, especially since 2013 has been so determining a year in our line of business with the outline law on Social Economy in July, and then, at the end of the year, the draft bill on the regulations applicable to crowdfunding in France. Arnaud Poissonnier has had his say on those matters and was solicited by the public authorities, especially by the cabinets of Fleur Pellerin who was then Minister delegate for the Digital Economy, and Benoît Hamon, former Minister delegate for Consumer Relations and Social Economy. His expertise has been fundamental in the development of crowdfunding as a lending tool, a strategic area in the progress of crowdfunding in France.

He was recently invited by Jean-Marc Ayrault, the French former Prime Minister, to represent Babyloan during a breakfast meeting dedicated to collaborative economy held in his quarters in Matignon. This rise in importance at the institutional level bestows greater credibility on Babyloan in the eyes of its community and allows Arnaud Poissonnier to share his vision of social entrepreneurship to the higher circles of the State in order to promote the reforms that are necessary for the sector of microfinance to reach its full potential.

BABylOAN, SOciAl BuSiNeSS iN the Service OF FuNDrAiSiNg


Babyloan stands for an approach to solidarity whose main features are innovation, affordability and allocation and raises more enthusiasm every day. The lender chooses the microentrepreneur that he wants to support according to his own criteria, such as the goals of the project, the interest he bears to the field of activity or the country where the project holder is from. The link between the microentrepreneurs and the lenders who support them is sustained throughout the whole duration of the loan and materializes in monthly repayments on the lenders’ Babyloan accounts.

250 000 website visits2 000 000 page views8 page views per visit5 min average length of visit7.5% of visitors make a transaction

What about 2014?Alexis Chailloux, Webmarketing Manager Et en 2014 ?

“After four years of good and faithful services, in 2014 our website gets a facelift. The whole team has rallied to rethink Babyloan’s identity and usability. So, what’s cooking? New logo, new graphic design, new website features.

I can’t really tell you more about it right now, but the new functionalities should boost the fundraising process, the number of lenders… and therefore our social impact. Check out your email account for a message from Babyloan from time to time, we’ll keep you posted!”

National Challenge: Changing the world through Solidarity

The second edition of the National Challenge, our yearly fundraising event designed to support even more microentrepreneurs, took place from November 15th to 25th 2013. This edition’s battle cry was “La Révolution Solidaire”, which roughly translates to “Changing the World through Solidarity”. The whole operation aims at promoting philanthropic lending and making it known to the general public so they could give it a try.

We recruited the Babyloan community for the occasion, and they helped us come up with the various slogans we used, for instance “Faites le prêt, pas la guerre” (“Make loans, not war”), or “L’amour est dans le prêt” (“Loan is in the air”). So, how did we do? Huge media impact, €260,000 raised in 10 days and more than 500 funded projects… which means we beat our record from the first edition. See you next year to hit new highs !

Fundraising, getting the general public involved

What about 2014? Alexandra Kozak - Community Manager“The Babyloan community will be at the heart of all the changes on our website, and will enjoy new, innovative features entirely designed for them. For instance, we’re working on giving more weight to the concepts of groups and ambassadors. In short, we’re doing our best to keep in touch with the community and multiply the opportunities to hear what they want to tell us.”

Julie Mercey, a lender on Babyloan since 2010

“I like being free to support whomever I choose, and that’s what Babyloan is all about.“

I am convinced that one of the site’s greatest assets is the fact that we know where the money is going. That’s really the reason why I decided to start lending. I felt I could really make a difference for someone that I had

chosen to support, which is not always the case with other approaches to solidarity. And there’s no need to lend huge amounts of money to have a deep social impact: you lend money, you get repaid, and lend again to another microentrepreneur. Since 2010, I have invested a total of €100 which has allowed me to actually lend €220 shared between 7 projects. The leverage effect just reinforces this feeling of being concretely useful.

I make a decision regarding who it is that I am going to support based on instincts, and I try to get involved in different types of projects. The pictures and profile descriptions give me enough information to relate to the microentrepreneurs, and the information given on the partner MFI reassure me that I’ve made the right choice. Right now, I count €80 of loan outstanding divided between two projects, one held by a woman in Togo and the other by a man in the Philippines. I am very proud to belong to the Babyloan initiative.”

BABYLOAN 23

• Our community: the Babyloanians

Babyloan has set up a number of tools in order to interact with the Babyloanians. Monthly newsletter, information blog and social networks, we are all over the web to allow our community to follow the platform’s latest news, to access new project profiles or hear from our volunteers in the field.

Blog - Emailing - Facebook - Twitter - Instagram


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Feedback from our lenders

“I’ve been lending on Babyloan since the platform was created, and I’m loving it. I went to do some humanitarian work in Togo last autumn and it raised my awareness of this country’s issues, leading me to take greater interest in the projects from Togo. Well done Babyloan, keep up the good work!” Danièle Hardy Bourget

“We all have 20 or 30 euros stagnating somewhere on a bank account, so why not reroute them towards Babyloan? We’ve been doing this for a few years already and we’ve never encountered any problem. The platform is reliable, and there’s no harm in lending!” Nicolas Bourlot

“Still a couple hours left for you to invest your 2013 earnings at a feel-good 0% rate… “ Damien Blondel

“I just think it’s fantastic to be able to help people who are working so hard to make it in their countries, just by giving them the boost they need. Lending is not the same as charity, and since I’ve first started lending I’ve been fully repaid every time, which has allowed me to keep supporting other projects with the same spending limit.” Roland Holzmann

Lending, and then what?More than 16,000 microentrepreneurs living in remote parts of the world have been supported on Babyloan. We do occasionally retrieve information about the entrepreneurs but we are not always able to find out about all the projects that have been supported by the community.

Is it possible to do more?Babyloan can establish contacts between the lenders and microentrepreneurs they have supported so they can meet in person during a personal trip.

Aurélie, a lender on Babyloan, has met two microentrepreneurs in Benin and Togo

“We had planned that trip to Benin and Togo for a whole year. We wanted to seek out people and actively try to comprehend the West African cultures. Babyloan’s fifth birthday was the perfect opportunity for us to contact their team and tell them about our project.

They immediately put us in touch with their local contacts in both countries.”

BABYLOAN 24

Fundraising, getting companies involved

Business partnerships

• The Babyloan Gift CardGive an original and philanthropic gift

The Babyloan Gift Card (from €20 to €100) is a “voucher” for a philanthropic loan that you can offer to your employees or clients in order for them to discover Babyloan. First, the person who receives the Gift Card visits babyloan.org and lends the money to the microentrepreneur of his choice, using the code mentioned on the card. Then when the loan has been entirely repaid on the platform, he can choose to lend the money to another microentrepreneur or to obtain a gift voucher of the same amount to be used in various shops via our partner Illicado. The Babyloan Gift Card is an original and philanthropic gift for a company’s employees or clients (Christmas, Mother’s Day, retirement, etc.) and are greatly appreciated by works councils.

• Philanthropic Revenue SharingCommunicate about your philanthropic actions

This offer allows a company to involve its clients in its philanthropic actions by lending a part of its profits to microentrepreneurs. The company can decide to lend a percentage or a precise amount for each product sold, each contract closed or each order received.With the Philanthropic Revenue Sharing offer, companies can perform a marketing operation around a product or on a specific period in order to boost its sales by highlighting its philanthropic commitment.

A number of partners have elected Babyloan and philanthropic lending as their 2013 corporate social responsibility project, involving both their employees and clients :


© ALSTOM

• Solidarity ChallengesRally your employees for a philanthropic challenge

Thanks to the Solidarity Challenge, the employees of a company can make loans to finance microentrepreneurs’ projects on a web platform dedicated to the event. The company sets the duration of the event and selects the projects that are to be displayed on the platform, so that each employee can choose the project he wishes to support. What’s more, Babyloan provides the company with an animation kit (posters, leaflets, banners, emails, etc.). As of today, Babyloan has led many successful Solidarity Challenges in partnership with companies such as Crédit Agricole, MAIF, Alstom, Sanofi, SEB and many more.The Solidarity Challenge is a powerful rallying tool: it makes for the gathering of all the employees and/or clients of a company around a philanthropic and innovative event.

FOCUS ON ALSTOM

Alstom’s partnership with Babyloan started in 2012 with their very first Solidarity Challenge.

We were then actively seeking out ways to raise our French colleagues and collaborators’ awareness to sustainable development.

Microcredit was a good theme to work with, as the Alstom Group was already involved in supporting local development initiatives.

We therefore contacted Babyloan, and they offered to set up the “Solidarity Challenge”

operation in 2012. Babyloan provided a custom-made platform dedicated to the event and all the communication equipment. We ended up exceeding our expectations: our initial goal was to raise €30,000, but we managed to reach €37,000 in 3 weeks and fund 72 projects.The successful out come of this first experience led our employees to participate in the National Challenge “La Révolution Solidaire” in November 2013. They achieved to lend €20,200 in just 10 days. We received some very positive feedback, especially because the lending process is a way to give a chance to microentrepreneurs with very limited initial investment. A number of our employees told us that they had been willing to support microcredit for a long time but that they used to be unsure about the existing platforms’ reliability. The very fact that we were now in a solid partnership reassured them.”

BABYLOAN 25

• Solidarity Vote PlatformsSupporting microentrepreneurs elected by the clients or staff of a company

Solidarity Vote Platforms are an alternative to Solidarity Challenges. It is a limited-time operation during which a company asks for its staff or clients to elect microentrepreneurs’ projects within an array of profiles that have been preselected by the company itself. The projects that gather the most votes are then funded by the company at the end of the event. The contenders are therefore not asked for any financial contribution, and the company is the only lending entity. The Solidarity Vote Platform thus allows a company to dedicate a loan sponsorship to support microentrepreneurs that have been chosen by the company members.

© BONOBO

FOCUS ON BONOBO

Bonobo and Babyloan have set up a Philanthropic Revenue Sharing operation in December 2013. For every item bought, Bonobo loaned €1 that was allocated to projects chosen by the clients and staff to be supported by the brand.

How did you come by the idea of setting up a solidarity event for the end of the year ?Since 2009, we had regularly invited our clients to commit alongside us to solidarity projects that followed

the pattern of some of the brand’s marketing highlights. This way, Bonobo is able to spotlight some NGOs and organizations working in the field of solidarity economy and sustainable development. Once we’d met with the Babyloan team, the whole operation was just a matter of course.

At the end of the day, Babyloan and Bonobo simply share the same core values. How did you hear about philanthropic lending ?Our clients are working young adults who have basically grown up along with the crowdfunding processes. Crowdfunding platforms such as Kiss Kiss Bank Bank have become a part of the 25 to 35 year old’s daily life. Consequently and in view of extending our partnership with ADIE in supporting young entrepreneurs, we tried to find a way to take on a more direct part and become lenders so we could help in concrete terms and allow people to launch their businesses. We immediately fell for Babyloan and the transparency of its approach to solidarity. In spite of the physical distance between us and the entrepreneurs, we can relate to them almost instantly just by reading their projects’ profiles.

Can you tell us about the impact of the operation both within the company and with your clients ?Well first, we are proud to be part of such an initiative. From the internal perspective, the operations led by the Jeans Foundation and particularly our involvement with Babyloan are considered by our teams as real challenges and as an opportunity to put our values into practice. Our staff has pushed this project in every one of our stores. There is also a clear sense that our clients like it when a brand commits to a cause and asks for their opinion, which certainly works in favor of our brand identity. It does not amount to a trigger in terms of purchases, but our clients like to be reassured that we do share the same values.

What a great success! Are you considering calling on Babyloan again for future operations ?We most certainly do. We would like 2014 to mark the beginning of a long term partnership. We are not sure yet of the form this partnership will assume but we are set on helping the Babyloan community grow and asking all our Bonobos to support all those projects.


• Loan sponsorshipLending to support the microentrepreneurs of your choice

This offer consists in enabling companies to lend funds to microentrepreneurs on the Babyloan platform. The same amount can be lent several times, as loans create a leverage effect which allows for the supporting of several projects.A company performing a Loan Sponsorship can communicate internally and externally about the support provided to these projects, and choose to support microentrepreneurs who work in the same business sector as they do.

FOCUS ON THE BOCUSE D’OR WINNERS

The Bocuse d’Or Winners is an association that gathers all the laureates of the prestigious culinary contest since it was created in 1987. Since the summer 2013, the Bocuse d’Or Winners have been funding projects from small restaurateurs, farmers or people involved in food related activities that the chefs obviously relate to.

Their willingness to commit stems from various sources: some of them took an interest in the spirit of microcredit and its values of dignity and reliability, some simply felt empathy towards fellow

entrepreneurs and the obstacles they face, while others were touched by the social and environmental issues that run in the background of the projects.

Supporting Babyloan was a way to find a common cause to unite 39 chefs (in 2013) from 11 countries. It also admittedly is a great opportunity in terms of communication, since it reconciles branding with sincere commitment. What we most enjoy is that this is a win-win partnership in the spirit of microcredit and that it will benefit to both Babyloan and the Bocuse d’Or Winners. Our next big step is the publication of a cookbook dedicated to Babyloan and planned to be released in November 2014, the profits of which will be invested on the platform to fund projects.

© BOCUSE D’OR WINNERS

Michel Roth, France, Bocuse d’Or 1991

“Microcredit is absolutely brilliant!You’re not giving charity, and you’re not doing it out of pity. This approach respects the dignity of people who need a helping hand. Knowing that you contribute to helping people you don’t know everywhere in the world is a wonderful feeling. When you wake up in the morning and look at yourself in the mirror, you can just stop and think “Hey, I’ve helped someone open their small restaurant somewhere on the other side of the planet, that’s kind of cool! I’ve supported driven people who work hard to make it and feed their children”. It just makes you feel good.

And then of course, you’re itching to actually go and meet them, to get to know them, to talk shop together and compare our inevitably different experiences and perspectives.

It makes you feel like going to these countries, not just as a tourist but as a human being in search of other human beings who need a little help. Supporting Babyloan means being able to do what you’ve always wanted to do but never had time for. They are organized in a way that makes it easy and practical to turn wishes into reality and make the world a better place.”

© BOCUSE D’OR WINNERS

BABYLOAN 27

Fundraising, getting students involved

• The RISE, the interschool challenge

On last November 12th and 13th, Babyloan organized an interschool challenge aiming at promoting microcredit among students and raising funds to support the microentrepreneurs’ projects published on the platform.

Our goal was to raise students’ awareness of microcredit in general and more specifically of philanthropic lending. The idea was to put this still little known new approach to solidarity in the spotlight. Beyond simple consciousness raising, The RISE was an opportunity to channel the existing healthy competition spirit in various student organizations and put it to good use.

15 CONTENDER CAMPUSES, €43,000 RAISED, MORE THAN 100 FUNDED PROJECTS

Jérôme Soulard, Project leader on the organization of the 2013 challenge

How did those two days go? Was there real emulation among the different schools?The play on the notion “challenge between the schools” worked beyond what we had hoped for. The associations really went with the flow and communicated a lot on their achievements especially on social networks.

What will you remember most from this experience? How would you describe it in a few words?A great experience that allowed to raise a lot more than what we expected. I’d like to think that the 2013 edition was just the start to a series of event that are bound to get bigger and bigger in France and possibly beyond!

© BABYLOAN

Matthis Durant, student at the ENS Cachan, the winning school !

All the Cachan team found The RISE to be an extremely stimulating project. The competition spirit between us and other schools has played a big part in the whole campus’ involvement and success was on the cards.Even though there still is a long way to go before microcredit is recognized as an efficient form of humanitarian action, I think that The RISE is a great way to contribute to promoting this type of funding.

© ENS CACHAN


• Volunteer student organizations

In 2013, several student organizations went in the field to help our local coordinators or simply to meet the microentrepreneurs that they had supported.

Voluntary action is a fantastic way to undertake a personal project and give meaning to a placement year for instance. These student associations can lean on Babyloan and deeply benefit from their contacts with our partners in the field and the microentrepreneurs in general.

MICROCREDIT EN 4L – Matthieu and Nicolas travel around the world in their 4L (a car that is the equivalent in the French culture of the well-known Beetle) to seek out microentrepreneurs.

They chose to lend money on Babyloan in order to support the development of entrepreneurship in the countries they will make stops in. The way the website works, they will be able to reuse the money once it is repaid to fund more projects and maximize their social impact! Thanks to the €20,000 they had managed to raise from appealing to their sponsors, they have been able to lend money to 72 Babyloan microentrepreneurs in 5 of our partner countries.They are seeking out the project holders they have supported and keep us up on their experiences in the field so we can share them with the Babyloanians.

LES ROUTES DU DEVELOPPEMENT – For the last 3 years, they have organized a yearly mission to Peru with our partner EDAPROSPO.

It has been 3 years now since the association Les routes du développement (“the paths to development”) has chosen microcredit as their war horse. Every year its members enjoy a unique international solidarity experience. In the field, the students are assigned various training tasks and meet the microentrepreneurs before telling us all about it so we can inform the lenders who have supported projects in Peru. They have become quite our little international correspondents!

BABYLOAN 29

Ma Classe Solidaire (Solidarity at School), the Babyloan networks association pedagogical project

In July 2012 Babyloan took the initiative of creating a general interest association: Babyloan Networks was born.Its main purpose? Awakening the youngsters’ sensibility to solidarity citizenship. To this end, the association deploys the Ma Classe Solidaire initiative in schools.

• What is Ma Classe Solidaire? It is a pedagogical project designed to give the junior high and high school students the keys to build a more sustainable future for themselves. A kit has been put together for the teachers to help them raise their pupils’ awareness to the economic and social aspects of sustainable development, a theme which has been added to the schools’ curriculum. This kit can be thought of as a toolbox, making it easy to go from theory to practical solidarity action with the pupils. It is available for free on maclassesolidaire.com.

• What happened in 2013?In 2013, the association published a printed edition of its pedagogical kit and gave it out to more than 1,200 teachers, mostly during the Salon de l’Education (a yearly event dedicated to Education in France) where Babyloan networks was present. A large number of teachers decided to seize this opportunity to take action, leading to the support of more than a hundred microentrepreneurs through philanthropic lending by 28 school classes.

• What’s new in 2014?Babyloan networks has been revamping its pedagogical kit for the start of the 2014 school year. New implements will be made available to teachers so they participate in the Ma Classe Solidaire project more easily, and the association website will get a facelift!

FOCUS ON THE MA CLASSE SOLIDAIRE PROJECT IN THE LYCEE DE SAINT CLOUD

Caroline teaches History and Geography in year 12 (eleventh grade) at the Alexandre Dumas high school. She started providing her students with the opportunity to set up a Ma Classe Solidaire project two years ago. Sustainable development is often approached through the environmental lens of focus, and Caroline thought that this project was an original idea to raise the students’ awareness of other related aspects.

Last year, her students heard about global issues, about solidarity economy and microcredit. Each of them gave €2 from their own pockets to support the microentrepreneur of their choice. This year, the students are also leading a fundraising campaign by selling home-made cakes.

A team of three students has taken over the thematic and created an interactive module dedicated to microcredit for their Travaux Personnels Encadrés (a course for which students are encouraged to show both autonomy and ability to work in groups to present a project based on themes that are decided on annually on a national level). This was the perfect opportunity for them to become ambassadors for solidarity economy! Last year’s students all got their €2 back but they chose not to get them back and to let them be used in support of another microentrepreneur. According to Caroline, “Ma Classe Solidaire has planted the seed of solidarity by developing a great classroom spirit that did not exist prior to the project”.

© Babyloan Networks

BABYLOAN, UN ACTEUR REFERENTDE LA MICROFINANCE

BABYLOAN, A STAKEHOLDER IN MICROFINANCE

A map of our global presence


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Babyloan, le système de prêt intermedié


• What is an MFI?

An MFI is a local structure providing financial and non-financial services to people who are excluded from the traditional banking system – this is why they are often called “Banks for the poor”. In spite of their strong social mission, the MFIs are not defined as relief organizations as they must reach financial balance. In fact, they can assume various legal forms: mutual funds, NGOs, associations, commercial structures… and can be regulated or not, according to the jurisdiction of their country of operation and their statuses.

The MFIs select their clients and assess their needs in order to adapt their credit offer. They analyze the credit demand, the projects’ viability and the repayment capacities of the clients. The MFIs lend money but they also support and train their clients, which makes them different from traditional financial institutions.

• The microfinance institutions

The Microfinance Institutions are key actors in Babyloan’s operational framework. What Babyloan provides is a refinancing solution, hence the microentrepreneurs whose profiles are displayed on the website have already received the money to expand their projects. Thanks to this system, the beneficiary does not have to wait for the Babyloanians to finance their project to receive the microcredit. The MFIs are essential intermediate structures in the field: • They know the microentrepreneurs and their projects as they are frequently in contact with their clients, and can hence carry out a close monitoring. • They provide more security to the lenders as they guarantee the repayment if the microentrepreneur cannot pay the loan back.

Why cannot we lend directly to the microentrepreneur ?

It is the core of the platform’s model and strategy. In addition to the aforementioned practical reasons, Babyloan cannot do the work carried out by the MFIs: granting the credits, collecting the payments and supporting the beneficiaries. Moreover, direct financing would expose the lenders to a high default risk, as it previously happened on other websites.

What’s new in 2014 ?Violette Cubier, Microfinance Investment Manager

We have set ourselves a number of goals to reach in 2014. First and foremost, we obviously want to keep monitoring the social impact and financial stability of our partner MFIs in order to guarantee a repayment rate of 100%. We also want to accentuate our presence in Sub-Saharan Africa where Babyloan could really make a difference in helping out the MFI finding funds, given the unfortunately limited number of bigger microfinance establishments operating in the area. We’ll keep you posted on the new countries where we’ll provide support!

BABYLOAN 33

• The MFI selection process

MFIs are essential local structures for Babyloan, yet not every MFI can form a partnership with us. Babyloan prioritizes MFIs displaying a strong social impact and human values as well as a relatively stable portfolio that allows to manage the risk in a more efficient way.

global loan outstanding amount of minimum €200,000Minimum number of 2,000 active borrowers

Minimum of 3 years of experience1 year of audited financial statements

legal registration carried out by legal authorities

• First contacts between Babyloan and the MFiBabyloan studies the preliminary applicationThe MFI is audited / visitedThe completed file is sent to the selection committee for an overall analysis

• Analysis of the application file by the Babyloan selection committeeThe committee makes its recommendationsThe committee and Babyloan discuss the potential of the partnership

• Final decisionThe application is approved or turned downIf the application is approved, the MFI is integrated and the contracts are signed

• Monitoring the MFIs

The situation of an MFI evolves throughout the years, so Babyloan asks its partners to send reports on a quarterly and yearly basis. This way Babyloan can assess the institution’s financial risk, governance and social mission. This information is then communicated to the internet users thanks to ratings displayed on the page of each MFI partner and on each project page. Babyloan also carries out an annual country risk monitoring and a daily news follow-up in order to be informed of all the political, economic and social changes in the world and more particularly in the countries where its MFI partners are located.

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0% totally refunded

CHAMROEUN – CAMBODIA

Chamroeun’s action targets very poor Cambodian households who find themselves excluded from formal financial services in order to help them find a way out of poverty.Our expert’s opinionAn MFI with very strong social impact and who is gaining popularity in Cambodia where competition is stiff!”

July 2008 BIRTH OF THE PARTNERSHIP € 195 AvERAGE LOAN AMOUNT835 FUNDED PROjECTS IN 2013 9 MONTHS AvERAGE LOAN MATURITy€ 202 590 LOANED IN 2013 88% OF WOMEN

Financial stabilitySocial performance

Organization stabilityContext/country rating


The Microfinance Institutions - MFIs

Feedback from Reang, a Cambodian weaver

Weaving is on the wane in Cambodia. It is an ancestral line of work which requires lots of patience. I work on my loom 10 hours a day to make pieces of fabric that I go and sell in the market. It takes me about three days to make one sheet that I will get €15 from. I am divorced and I don’t have a lot of money to support my family but weaving allows me to get by and to pay for my two grandchildren’s education.

FINADEV – BENIN

July 2008 BIRTH OF THE PARTNERSHIP € 545 AvERAGE LOAN AMOUNT293 FUNDED PROjECTS IN 2013 10 MONTHS AvERAGE LOAN MATURITy€ 202 280 LOANED IN 2013 97% OF WOMEN


Finadev mostly focuses on working women in the biggest markets in Benin, especially the Dantokpa market which is the largest in all West Africa.Our expert’s opinionFinadev is one of Babyloan’s longest-standing partners; we have been working with them since 2008.”


BABYLOAN 35

Feedback from Monica who manages a grocery store in Ecuador

“I run a small shop in Quito right in front of a factory. My client base is mostly made of factory workers and they usually buy great quantities of beer, ice-creams and sodas. Those really are the flagships in my shop. I used to live and go to work in one of the most dangerous areas in Quito, but I recently changed premises and I can see how moving to this new spot has enhanced both my sales and my personal safety. It has been easier for me to repay my loan since my working conditions have improved, and, most importantly, it also means that I will be able to provide better living conditions to my children.”

CEPESIU – ECUADOR

March 2009 BIRTH OF THE PARTNERSHIP € 473 AvERAGE LOAN AMOUNT586 FUNDED PROjECTS IN 2013 7 MONTHS AvERAGE LOAN MATURITy€ 335 440 LOANED IN 2013 63% OF WOMEN



AFODENIC – NICARAGUA

Cepesiu participe au développement durable des économies locales en apportant une offre complète de services et d’outils aux petits entrepreneurs. Our expert’s opinion“A tiny MFI whose team really put their heart and soul into their work! Great social impact and great organization.”

Afodenic reaches mostly urban populations who are excluded from the traditional banking system.Our expert’s opinionAfodenic offers a wide array of financial products that are fitted to the needs of a local population that still bears the marks of the early 2000’s national microfinance crisis.”

Financial stabilitySocial performancel


January 2010 BIRTH OF THE PARTNERSHIP € 626 AvERAGE LOAN AMOUNT172 FUNDED PROjECTS IN 2013 11 MONTHS AvERAGE LOAN MATURITy€ 94 410 LOANED IN 2013 77% OF WOMEN



Feedback from Akoko who runs a small shop in Togo

“I have been managing my store since 2009 in Bè, a working-class area in Lome. For a while I could only sell prepay cellphone cards, but now I can also offer cosmetics, groceries and staples. I am a new mother, and I need to earn stable revenue in order to take care of my small family. My shop helps me to get through, which I am very proud of.”


WAGES - TOGO



EDAPROSPO – PERU

Wages plays its part in the economic growth in Togo by providing financial services and products to microentrepreneurs, especially women.Our expert’s opinionAn MFI that was created to help out women taking financial care of their family after unemployment skyrocketed in the capital city.”

EdaProspo’s mission is to support local development by addressing the needs of entrepreneurs in the Lima area. The recipients have the option to gather together and ask for group loans.Our expert’s opinion“Our partner in blighted areas of Lima, EdaProspo is growing steadily!”



February 2010 BIRTH OF THE PARTNERSHIP € 639 AvERAGE LOAN AMOUNT315 FUNDED PROjECTS IN 2013 12 MONTHS AvERAGE LOAN MATURITy€ 237 490 LOANED IN 2013 73% OF WOMEN

November 2010 BIRTH OF THE PARTNERSHIP € 780 AvERAGE LOAN AMOUNT182 FUNDED PROjECTS IN 2013 6 MONTHS AvERAGE LOAN MATURITy€ 215 080 LOANED IN 2013 88% OF WOMEN

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ADIE - FRANCE

ASALA - PALESTINE

GDMPC – THE PHILIPPINES

GDMPC operates in Mindanao Island, a remote area in the South of the Philippines. Its clients are mostly farmers who want to work on improving their living conditions.Our expert’s opinion“A cooperative structure operating in one of the poorest regions of the archipelago to support impoverished farmers.”

Adie finances and supports entrepreneurs looking to start up their business in France. It focuses on people who are unemployed and minimum welfare recipients.Our expert’s opinion“A pioneer of microcredit in developed countries!”

Asala’s mission consists in supporting Palestinian women who live in difficult conditions and leading them towards financial stability and independence.Our expert’s opinion“An MFI with a 100% female client base striving to empower women in a sensitive area. A real favorite of ours!”








December 2010 BIRTH OF THE PARTNERSHIP € 3 192 AvERAGE LOAN AMOUNT43 FUNDED PROjECTS IN 2013 26 MONTHS AvERAGE LOAN MATURITy€ 149 000 LOANED IN 2013 42 % OF WOMEN

July 2011 BIRTH OF THE PARTNERSHIP € 1 064 AvERAGE LOAN AMOUNT203 FUNDED PROjECTS IN 2013 13 MONTHS AvERAGE LOAN MATURITy€ 203 130 LOANED IN 2013 100 % OF WOMEN

December 2011 BIRTH OF THE PARTNERSHIP € 264 AvERAGE LOAN AMOUNT605 FUNDED PROjECTS IN 2013 7 MONTHS AvERAGE LOAN MATURITy€ 175 100 LOANED IN 2013 77 % OF WOMEN



KOMIDA – INDONESIA

The Komida cooperative is dedicated to underprivileged Indonesian women and was very active after the 2004 tsunami.Our expert’s opinion“A partner who is entirely devoted to women and their emancipation through work.”

May 2012 BIRTH OF THE PARTNERSHIP € 119 AvERAGE LOAN AMOUNT520 FUNDED PROjECTS IN 2013 11 MONTHS AvERAGE LOAN MATURITy€ 62 870 LOANED IN 2013 100% OF WOMEN

June 2012 BIRTH OF THE PARTNERSHIP € 555 AvERAGE LOAN AMOUNT189 FUNDED PROjECTS IN 2013 11 MONTHS AvERAGE LOAN MATURITy€ 120 800 LOANED IN 2013 90 % OF WOMEN

June 2012 BIRTH OF THE PARTNERSHIP € 873 AvERAGE LOAN AMOUNT36 FUNDED PROjECTS IN 2013 9 MONTHS AvERAGE LOAN MATURITy€ 20 430 LOANED IN 2013 100 % OF WOMEN

CBIRD – CAMBODIA

CBIRD is located in rural Cambodian areas and mostly reaches farmers living in the North of the country.Our expert’s opinion« Une IMF qui agit en zone rurale et qui s’adapte aux besoins des agriculteurs. »

FUNDACION MUJER - COSTA RICA

Fundación Mujer is entirely dedicated to women and relies on a deeply social approach to help them improve their living conditions.Our expert’s opinionMain target: empowering women by providing them with various forms of financial and personal training.







September 2012 BIRTH OF THE PARTNERSHIP € 873 AvERAGE LOAN AMOUNT54 FUNDED PROjECTS IN 2013 12 MONTHS AvERAGE LOAN MATURITy€ 43 980 LOANED IN 2013 60 % OF WOMEN

November 2012 BIRTH OF THE PARTNERSHIP € 4 475 AvERAGE LOAN AMOUNT19 FUNDED PROjECTS IN 2013 34 MONTHS AvERAGE LOAN MATURITy€ 89 500 LOANED IN 2013 48 % OF WOMEN

August 2013 BIRTH OF THE PARTNERSHIP € 737 AvERAGE LOAN AMOUNT25 FUNDED PROjECTS IN 2013 10 MONTHS AvERAGE LOAN MATURITy€ 26 820 LOANED IN 2013 36 % OF WOMEN

MEC DELTA - SENEGAL

MEC Delta supports people who want to strengthen or create microenterprises in the remote area of Ronkh, in the North of Senegal.Our expert’s opinion“MEC Delta was created by small-scale farmers in order to tend to their own needs. A 100% local initiative!”

CREASOL - FRANCE

Créa-sol participates to the economic development of the Côte d’Azur in the South of France by providing financial support to entrepreneurs who have been turned down by the traditional banking institutions.Our expert’s opinion“A partner whose support to Southern entrepreneurs is backed by the Caisse d’Epargne.”

FONDESURCO – PERU

Fondesurco operates in the South of Peru and offers eco-friendly solutions to improve the local economy while promoting environmental conservation.Our expert’s opinion“Fondersurco submits the projects to an ecological diagnosis in order to make sure that all of them are eco-friendly.”







BABYLOAN 39



Les Institutions de Microfinance - IMF

IDM - HAITI

ID Microfinance takes action to support the underprivileged populations in Port-au-Prince and grant them access to credit in very small amounts that fit their needs.Our expert’s opinionBabyloan’s last-but-not-least partner: an MFI working at the heart of Haitian slums.

MIKRA – BOSNIA

MIKRA focuses on supporting impoverished workers and particularly women, in order to lay the foundations of a fairer and more equitable society.Our expert’s opinionOur partner in a difficult post-crisis context, whose well-oiled organization allowed for it to take root in a country that is still politically divided.

INMAA - MAROC

INMAA operates in rural Morocco and furthers the growth of microentrepreneurship through a local monitoring and support approach.Our expert’s opinionA Moroccan MFI on the Babyloan platform, the fruit of three years of legal efforts!”








September 2013 BIRTH OF THE PARTNERSHIP € 960 AvERAGE LOAN AMOUNT23 FUNDED PROjECTS IN 2013 11 MONTHS AvERAGE LOAN MATURITy€ 19 790 LOANED IN 2013 92 % OF WOMEN

October 2013 BIRTH OF THE PARTNERSHIP € 910 AvERAGE LOAN AMOUNT12 FUNDED PROjECTS IN 2013 13 MONTHS AvERAGE LOAN MATURITy€ 11 790 LOANED IN 2013 52 % OF WOMEN

December 2013 BIRTH OF THE PARTNERSHIP € 424 AvERAGE LOAN AMOUNT18 FUNDED PROjECTS IN 2013 6 MONTHS AvERAGE LOAN MATURITy€ 7 740 LOANED IN 2013 79 % OF WOMEN

ETATS FINANCIERSFINANCIAL STATEMENT


sous réserve de l’approbation définitive de notre commissaire aux comptes.


FINANCIAL STATEMENT

Résultats sous réserve de l’approbation du commissaire aux comptes

BALANCE SHEET

31/12/13 31/12/12

Brand name, so8ware and similar rights 39 352 37 801 Other tangible assets 15 654 22 406 Long term investments 453 277 Other financial fixed assets 2 245 2 244 Clients and related accounts 22 641 14 036 Trade receivables 276 347 Personnel 253 -‐ Social security 7 116 3 536 Income tax expenses 14 531 49 326 Turnover tax payable 11 431 14 614 Others (amounts receivable from Internet users to MFIs) 1 324 933 1 228 486 Unpaid subscribed capitalMarketable securiYesCash 960 731 607 358 Prepaid expenses 3 141 1 810 TOTAL Assets 2 402 757 1 982 241

LIABILITIES (Net value in €)

31/12/13 31/12/12Share capital 1 797 800 1 557 700 Share capital premium 856 976 676 901 Profit/loss brought forward 2 411 084 -‐ 1 786 656 -‐ Profit/loss for the period 666 819 -‐ 624 429 -‐ Provision for risks and charges 49 326 -‐ ConverYble bonds 194 922 169 932 Bank advances and overdra8 107 497 Various loans 70 000 -‐ Associate loans 8 000 8 000 Supplier liabiliYes 68 533 71 665 Total tax and payroll liabiliYes (social charges provision) 49 025 108 806 Turnover tax payable 5 789 2 078 Other taxes 5 786 7 201 Other debts (IMF+ Babyloan accounts) 2 267 006 1 791 043 TOTAL Liabili@es 2 402 757 1 982 241

ASSETS (Net value in €)


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31/12/13 31/12/12Net Sales 188 375 139 666 TOTAL opera9ng income 212 535 140 599 Purchase of goodsExternal costs (website development and costs) 197 753 194 645 Taxes 5 995 6 643 Wages and salaries 422 913 401 705 Social charges 162 281 158 924 Deprecia9on of fixed assets 29 232 31 436 Other expenses 923 1 212 Total opera9ng expenses 819 097 794 565 OPERATING RESULT 606 562 -‐ 653 966 -‐ TOTAL financial income 3 567 TOTAL financial expenses 7 503 6 016 FINANCIAL RESULT 7 500 -‐ 5 449 -‐ CURRENT RESULT BEFORE TAXATION 614 062 -‐ 659 415 -‐ TOTAL excep9onal income 552 3 309 TOTAL excep9onal expenses 53 309 1 118 EXCEPTIONAL RESULT 52 757 -‐ 2 191 Income tax expenses -‐ 32 795 -‐ TOTAL income 213 090 144 475 TOTAL expenses 879 909 768 904 NET RESULT 666 819 -‐ 624 429 -‐

PROFIT AND LOSS STATEMENT

BABYLOAN - 14, impasse Carnot - 92240 Malako� - FRANCE Phone : + 33 (0) 1 71 16 21 25 - www.babyloan.org

Babyloan Annual Report 2013

Documents

Transcript of Babyloan Annual Report 2013