Norfund, a Norwegian investment management company focused on emerging markets, announced yesterday a strategic $20 million investment in the Apis Growth Markets Fund III .

Apis Partners LLP, the fund manager behind Apis Growth Markets Fund III, boasts a proven track record. Their previous Growth Markets Funds, which collectively raised a remarkable $850 million, have a history of delivering both financial returns and positive social impact.

The new fund will continue to target key trends like cashless payments, embedded finance, and financial inclusion, all of which are critical areas for improving livelihoods in Africa and Southeast Asia.

Shared Values Fuel Collaboration

Espen Froyn, Norfund’s Senior Vice President for Financial Inclusion (FI) Africa, emphasised the strong alignment between Norfund and Apis’s goals:

“We are impressed by Apis’ professionalism and expertise in guiding promising mature FinTechs through 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.”

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Norfund’s Expanding Fintech Focus

Norfund recognises the transformative power of FinTech in reaching underserved communities. In 2022, they broadened their investment focus to encompass FinTech alongside traditional financial institutions.

Now, they actively support FinTech companies offering innovative solutions like digital lending, neobanking, embedded finance, insurtech, and payment solutions across sub-Saharan Africa and Southeast Asia.

Norfund typically invests directly in high-quality FinTech companies, providing between $5-20 million in loans and equity during their growth stages (Series A onwards).

Some notable names in their portfolio include Wave Money, Lula Lend, Amartha Funding Societies, and AwanTunai. They also collaborate with established FinTech funds like Quona Capital and Integra Partners to extend their reach to promising early-stage ventures.

Strategic Diversification and Mutual Benefit

By investing in Apis Growth Markets Fund III, Norfund strategically diversifies its portfolio into a wider range of mature and high-growth FinTech companies.

These companies play a vital role in providing affordable and accessible financial services to individuals, entrepreneurs, and established businesses in emerging markets.

Norfund’s investment is crucial for Apis to reach its target fund size, particularly in a challenging global fundraising environment, especially for emerging market managers. The partnership also provides Norfund with valuable insights from a leading industry investor.

A Look at Apis’ Past Success

One noteworthy example of Apis’ successful investment is TymeBank, a portfolio company in one of their previous Growth Markets funds. TymeBank has become a shining example of financial inclusion in action.

Founded on the principles of simplicity, transparency, and affordability, it has become one of the world’s fastest-growing digital banks, boasting over 9 million customers since launching in February 2019. TymeBank’s success story underscores the transformative potential of FinTech in emerging markets.

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The Future of Financial Inclusion

This collaboration between Norfund and Apis Growth Markets Fund III signifies a positive step towards a future where FinTech empowers financial inclusion and economic growth in developing economies.

By providing crucial funding and to promote innovation, this partnership has the potential to unlock a world where financial services are accessible and affordable for all.