Empowering female founders: Scaling a beauty brand in Armenia
Empowering female founders: Scaling a beauty brand in Armenia
While women constitute a majority of the Armenian workforce, only 28% of local businesses have women among their owners, according to the World Bank Enterprise Survey. Meanwhile, access to finance and lack of initial capital for starting business remain some of the key challenges for local women entrepreneurs, and the financing gap for women-owned and women-led MSMEs is more than 2% of Armenian GDP*.
Women-led businesses are key to building a stronger and more inclusive Armenian economy. Such businesses, however, still have limited access to capital.
Addressing the persistent barriers women entrepreneurs face, we provided a €9.0 million loan dedicated to supporting women-led businesses to Inecobank. A longstanding partner of EFSE, Inecobank is known for financial innovation, commitment to financing MSMEs and tailoring loan products for aspiring entrepreneurs.
*Source: IFC, SME Finance Forum
Impact Spotlight
Experienced cosmetologist Anna Stepanyan had a transformative idea – producing skincare products tailored to the skin type of Armenian women. This idea became Stepline, a thriving business that draws on the expert advice of leading dermatologists and cosmetologists across the country. Today, Anna produces more than 200 products under her own Esthe Nature brand and supports the production capacities of other Armenian skincare companies.
Eager to grow beyond Armenia and expand Stepline’s product range to include a dedicated line for children’s care, Anna turned to Inecobank. The bank recognised her potential and provided the financing needed to increase competitiveness and brand awareness, both at home and internationally.
What began in 2003 as a small company developing formulas for professional beauty lines is now a promising business looking to scale. Stepline is opening its own branded store in September 2025 and is keen to spread its care-products line to the US and Europe. The company currently employs 13 professionals – all women – and plans to increase the number of employees to support its bold development strategy.
As the company continues to grow, Anna remains a guiding force - personally engaging in the production process and nurturing the brand with unwavering care. The business has navigated many strategic challenges over the past 20 years - from securing the capital to invest in innovative production technologies to reimagining its brand identity and marketing strategy.
With Anna’s determination and Inecobank’s support, Stepline has remained ahead of its peers in a rapidly evolving and competitive marketplace.
Inecobank’s funding has helped us grasp opportunities that may have passed us by. After 20 years of organic growth, we are so proud to be throwing open the doors to our own standalone store.”
Anna Stepanyan, CEO of Stepline
Our investment
Our €9.0 million, long-term Tier 2 subordinated loan to Inecobank strengthened its capital position. This allowed it to meet the financing needs of more local women-led and/or women-owned MSMEs across different industries, from manufacturing and construction to trade and agriculture.
Leveraging its effective branch network and digital offerings, Inecobank is using this capital to give more women the support they need to turn great ideas into thriving businesses. This should reduce gender disparities, maintain jobs, and contribute to a stronger and more inclusive economy.
By responding to high credit demand and making capital more accessible for vulnerable groups, we help unlock entrepreneurial and development potential in Armenia.
Finally, by providing this capital-supporting instrument, the Fund plays a catalytic role in supporting the Bank in mobilizing additional funding from other investors.
Impact of our investment
Our newest investment builds on our successful partnership with Inecobank, which has supported over 90,000 jobs since the start of cooperation in 2012. In total, we have facilitated €63.7 million to Inecobank alongside dedicated Advisory & Capacity Building services for lasting impact. Through these services, we have helped Inecobank strengthen its risk management systems and MSME lending strategies.
Hayk Voskanyan, the Chief Executive Officer of Inecobank, said: "At Inecobank, we are proud to stand behind entrepreneurs who turn ambition into impact. Through our partnership with EFSE, we’ve been able to channel targeted support to small businesses that drive inclusive growth. Stories like this reflect how access to the right financing can unlock potential and build lasting value for communities."
