The Innovations Against Poverty (IAP) programme has completed its first call for proposals in Bangladesh under Round 3, selecting two inclusive businesses for co-financing and technical assistance: iFarmer and Tetra.
The call attracted 92 applications from companies across the country, reflecting strong demand for catalytic finance among Bangladeshi businesses working with low-income communities. After screening, evaluation, and a competitive pitching round, ten companies advanced to due diligence. Two were ultimately contracted.
The contracted companies
iFarmer
Agriculture employs over 40 per cent of Bangladesh’s workforce; yet a significant proportion of smallholder farmers lack access to essential services required for farming which includes affordable credit, quality agri-inputs, reliable market access and timely information. This often compels farmers to rely on informal lenders, counterfeit products, biased information from local retailers and uncertain payment processes for their produce.
iFarmer addresses this by facilitating convenient financial services, necessary agri-inputs, advisory support and improved market access. Farmers are served through the iFarmer Centers spread across 42 districts of the country, where farmers can avail in-person services from iFarmer. Apart from that, iFarmer also keeps farmers engaged with digital services through weather alert systems and information on best agricultural practices. Since 2019, iFarmer has served over 307,700 farmers – among whom 46 per cent are women.
Under the IAP partnership, iFarmer will receive EUR 135,996 to scale its model. The company is targeting to serve 10,000 women farmers in 12 different districts with their required farming essentials. This will result in formal financial inclusion of women farmers, increased productivity from sustainable farming practices, reduced production costs and enable women farmers to make farming decisions independently. IAP will provide technical assistance to iFarmer including a GESI consultant, GESI framework development, and capacity-building on climate assessment.
Tetra
Rural water infrastructure in Bangladesh regularly fails, leaving climate-vulnerable households without reliable access to safe water. The challenge is particularly acute in coastal areas, where rising salinity has made safe drinking water increasingly scarce.
Tetra builds and operates decentralised water treatment systems as community businesses, with women trained as micro-entrepreneurs running the plants. IoT-enabled water ATMs and One Stop Service Centres (OSSC) keep the systems running reliably, integrating low-income women into the value chain as service operators rather than passive beneficiaries.
What we learnt
The Bangladesh call showed that the full IAP Challenge Fund cycle can be delivered in a more streamlined way, completed in four months rather than the usual six and without compromising core quality. Strong outreach and structured ecosystem engagement reached 1,295 stakeholders, 608 registrations, and 92 complete applications. Webinars and one-on-one guidance helped applicants navigate proposal development and compliance.
The compressed timeline did shape the experience at every stage. Some promising companies could not finalise their applications in time, and others submitted underdeveloped proposals despite strong underlying business cases. Due diligence on ten companies within roughly eighteen days was a heavy lift for a small team. The experience underlines the value of allowing sufficient time at each stage of the process, so that companies can put forward their strongest case throughout.
Looking ahead
The call has given IAP a strong starting point in Bangladesh: two companies with credible inclusive business models, a clearer view of what local applicants need from the process, and a network of engaged businesses to build on in future rounds.