Amplify Growth Partnership, a leading venture debt firm, has announced the launch of a new $100 million growth debt fund. This fund aims to provide innovative financing solutions to high-growth technology companies operating across Africa, the Middle East, and Pakistan.

Direct Financing for Expansion

The fund will focus on offering debt capital to startups and scale-ups that have demonstrated strong market traction. By providing non-dilutive financing, Amplify Growth Partnership enables companies to accelerate their growth without diluting their ownership. This approach goes along with traditional equity funding and offers a valuable alternative for companies seeking to raise capital.

Targeting High-Growth Sectors

The fund will primarily target companies in sectors such as fintech, e-commerce, healthtech, and enterprise software. These industries have witnessed significant growth and innovation in recent years, making them attractive investment opportunities.

Flexible Financing Options

Amplify Growth Partnership will deploy capital in ticket sizes ranging from $1 million to $10 million. The firm offers flexible repayment terms tailored to each company’s specific needs, considering factors such as cash flow and growth projections. This approach ensures that the financing aligns with the company’s financial goals.

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Addressing Funding Challenges

The launch of this growth debt fund comes at a crucial time for startups in emerging markets. Global economic uncertainties have made it challenging for many companies to raise equity capital. Amplify Growth Partnership’s offering provides a valuable alternative, potentially helping companies extend their runway and achieve key milestones without dilution.

A Growing Ecosystem

This initiative reflects the increasing complexity of the startup financing ecosystem in Africa, the Middle East, and Pakistan. As the technology sector in these regions continues to flourish, there is a growing demand for diverse funding options to support innovation and growth. Amplify Growth Partnership’s fund is well-positioned to meet this demand and contribute to the region’s economic development.

Focus on Growth-Stage Companies

Amplify will primarily focus on providing debt capital to companies in the Series A to Series C stages of growth. While 2023 witnessed a significant increase in debt funding for MENA venture-backed companies, Amplify aims to cater to the broader needs of the VC ecosystem by focusing on market-standard transactions.

Sharaf Sharaf Takes the Lead

Sharaf Sharaf, a seasoned investment professional with over 20 years of experience, will lead Amplify. Sharaf will oversee deal origination, evaluation, and portfolio management.

His expertise in debt and equity investments across various sectors and geographies will be invaluable in identifying promising investment opportunities.

Amplify’s Investment Strategy

The Amplify Growth Fund will primarily focus on companies with proven market demand and strong growth potential. Up to 20% of the fund’s capital will be allocated to companies outside of MENA seeking to enter the region and to traditional enterprises integrating technology into their operations.

Backing from Renowned Investment Firms

The Amplify Growth Fund is backed by Ajeej Capital and Nuwa Capital, two well-established GCC investment firms. Ajeej Capital, founded in 2007, is a leading independent alternative asset manager focused on MENA public equity.

Nuwa Capital, founded in 2020, is a pioneering investment platform that aims to redefine the relationship between founders and capital.

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Preferred Investment Criteria

Amplify is seeking to invest in companies that meet the following criteria:

GCC Nexus: Companies with a strong presence in the Gulf Cooperation Council (GCC) region.
Revenue: Companies with annual revenue exceeding $5 million.
Low Cash Burn: Companies with efficient operations and minimal cash burn.
High Growth: Companies demonstrating significant growth potential.
VC Backed: Companies that have received venture capital funding.
Concurrent or Recent Equity Round: Companies that are currently undergoing or have recently completed an equity funding round.

Amplify Growth Fund’s launch is a positive development for the MENA tech ecosystem. By providing debt capital to promising companies, Amplify can help these businesses scale, create jobs, and drive innovation in the region.

With its strong backing and experienced team, Amplify is well-positioned to become a leading player in the MENA debt capital market.