Norfund has injected $20 million into a new Apis fund dubbed the Apis Growth Markets Fund III to invest in high-growth, tech-enabled financial services companies globally.
Apis Growth Markets Fund III will focus on pivotal trends such as Cashless Payments, Embedded Finance, and Financial Inclusion, all of which enhance livelihoods in Africa and South/Southeast Asia just like Apis’ previous two Growth Markets Funds, which collectively raised commitments of around $850 million.
“We are impressed by Apis’ professionalism and expertise in guiding the growth of promising mature FinTechs through its active and invaluable mentorship. Apis and Norfund share a strong commitment to improving financial inclusion in emerging markets. This partnership enables Norfund to develop our internal fintech expertise and offers opportunities for direct investments through co-investing with the fund.”Espen Froyn , Senior Vice President for FI Africa in Norfund
Recognizing the crucial role of Financial Technology (“FinTech”) in improving financial inclusion and reaching economically disadvantaged individuals and small businesses, Norfund broadened its investment focus in 2022 to include FinTech companies alongside banks, microfinance and other financial institutions. Norfund now actively supports financial inclusion-oriented FinTechs engaging in digital lending, neobanking, embedded finance, insurtech, and payment solutions across sub-Saharan Africa and Southeast Asia.
Norfund typically provides direct investments in high-quality FinTech companies, offering between $5-20 million in loans and equity to firms in their early growth stages, generally from Series A onwards. Since establishing the FinTech Investment Strategy, Norfund has invested in Wave Money, Lula Lend, Amartha, Funding Societies, and AwanTunai. Besides direct investment, Norfund also works with FinTech funds such as Quona Capital and Integra Partners, to extend its reach to promising early-phase FinTech companies.
Collaborating with Apis to augment Norfund’s FinTech investment strategy
Norfund’s investment in Apis Growth Markets Fund III represents a strategic decision to further diversify its portfolio into a broader set of mature and high-growth FinTechs that support individuals, entrepreneurs and established businesses with affordable and accessible financial services in emerging markets. Norfund’s commitment will help Apis reach its target fund size, especially at a time when fundraising has been challenging globally and particularly for emerging markets managers. The partnership will also provide Norfund with valuable insights from a leading industry investor.
“Apis’ expertise in payment solutions and embedded finance is profound. Seamless and cashless digital payments can significantly boost productivity and enhance digital inclusion, an area where Apis truly excels. In addition, we recognize the vital role of embedded finance in helping entrepreneurs and small businesses access the productive assets they need to thrive. We look forward to seeing Apis bring essential capital to these crucial segments,”says Investment Manager Kathy Chang (middle).
