User:Anam.so/sandbox

= Seed Out = Seed Out is a non-profit, microfinance institution (MFI), founded by Zain Ashraf in 2013. Seed Out is regarded as Pakistan’s first interest-free crowdfunding platform that is dedicated to alleviating poverty by handing out in kind loans to establish a small business. With its head office in Lahore, Punjab, Seed Out currently operates in 4 cities in Pakistan. Seed Out’s founder, Zain Ashraf has been awarded the Common Wealth Youth Award, 2018 and was featured in Forbes 30 Under 30 by virtue of his contribution to development work via Seed Out. Seed Out is a member of Islamic Micro Finance Network.

Background
After completing his bachelor’s degree in Business Administration from the University of Miami, USA, Zain Ashraf came back to Pakistan determined to alleviate poverty through sustainable means. He began working on a micro finance model for his nonprofit organization and wanted to embed the system in IT. After 2 years of working on the model, Seed Out was founded in December 2013 and formally began its operations in 2014, from Gujranwala. The organization established its head office in Lahore. It further expanded to the cities of Faisalabad and Bahawalnagar and plans to increase its outreach in years to come.

Loans
Seed Out does not give loans to beneficiaries in the form of cash. Instead, Seed Out gives interest free, in kind loans to beneficiaries to start an asset based business that generates a sustainable income stream for the beneficiary.

Seed Out’s average loan size is of PKR 85,000 (USD 600) and the maximum loan size disbursed is of PKR 200,000 (USD 1400). The rationale behind giving a sizable loan is to enable the beneficiary to set up or expand a small scale business without further dependence. The organization has a policy of waiving off the loan in case of the beneficiaries’ death or any other unforeseen circumstance.

The loan repayments are collected through monthly installments and become part of the organization’s revolving fund, which is used to fund more entrepreneurs.

Capacity Building
Seed Out invests in the capacity building of all entrepreneurs raised through its platform. Seed Out’s Social Mobilizers coach the beneficiaries on aspects of business management when the business is initially handed over to the beneficiary. Capacity building is then carried out at regular intervals in order to reinforce best practices.

With external funding, training workshops are also conducted which bring beneficiaries on a single platform and facilitate the formation of linkages, on top of imparting skill based knowledge. The beneficiaries also receive coaching on issues related to health and hygiene.

Loan Disbursement Cycle
When the borrower approaches Seed Out, a seven stage verification process takes place before the start of the funding process. Through this process, a detailed background check of the borrower occurs which allows Seed Out to determine the credibility and requirements of the borrower. Once the verification process is complete and the business viability is established, the borrower’s story is published on Seed Out’s website. When the funding requirement for the borrower is met via crowdfunding, disbursement of the project takes place.

Seed Out’s core team creates a two-fold impact on the micro entrepreneurs through capacity building and micro financing. The loan repayments are collected through monthly installments without any administrative or interest charges. The recovered installments are collected in the revolving fund in order to raise more entrepreneurs.

Corporate Collaborations
Seed Out has collaborated with various private sector organizations in order to raise entrepreneurs.

In 2015, Seed Out collaborated with Coca Cola Beverages Private Limited for the “Zeenat Gari” project in which 5 customized Auto Rickshaws were handed out to women. To ensure the safety of women and make the experience comfortable for them, the Zeenat Gaari was carefully designed with features such as security gadgets, Wi-Fi and fans.

In 2015, Seed Out collaborated with Nestle Pakistan to set up general stores for women, the “Nescafe Dhaba.”

Awards & Honors

 * Forbes 30 Under 30 Asia (Category: Social Entrepreneurship), 2019
 * Member of Islamic Micro-finance Network
 * Commonwealth Youth Award, 2018
 * University of Miami 30 Under 30 Second Position in University of Miami Business Competition, 2018
 * Jonkoping International Business School in Sweden published a chapter on Seed Out in their book 'Contextualizing Entrepreneurship in Emerging Economies and Developing Countries', 2017
 * Pakistan Poverty Alleviation Program Award, 2015