World Bank Group member International Finance Corporation (IFC) has invested $75 million in a new fund by London-based private equity (PE) firm Apis Partners, according to a press release.
IFC’s investment aims to help innovative mid-cap financial service providers expand and boost financial inclusion among individuals and micro, small, and medium-sized enterprises across Africa, South Asia, and Southeast Asia.
The new vehicle, Apis Growth Markets Fund III, will focus on fast-growing companies that are using technological innovations to expand access to financial services. It will issue cheques of $60-70 million, including co-investments, per transaction.
These innovations include embedded finance, which allows non-financial companies like retailers to offer financial products and services; commerce enablement, which supports areas such as online payments; and environmental, social and governance monitoring.
IFC has also allocated an additional $25 million for selectively investing alongside the fund in Apis portfolio companies.
In April, DealStreetAsia reported that Apis Partners is in the market to raise $500 million for a new fund that will invest in South Asia, Southeast Asia, and Africa.
Many countries in Africa, Southeast Asia and South Asia present significant opportunities for technological disruptions in financial markets in areas such as payments, consumer and enterprise finance. Apis’s new fund will invest in countries such as Egypt, India, Indonesia, Kenya, Nigeria, and South Africa.
“The project will support sustainable economic growth led by the private sector, help create jobs, and boost financial inclusion across Africa and Asia,” said Mohamed Gouled, Vice President of Industries at IFC.
“It will also increase the competitiveness of fintech companies and MSMEs in these markets and allow them to provide more innovative financial solutions to individuals and businesses.”
In addition to providing capital, IFC will help Apis improve gender diversity both in their investment team and the companies the fund will invest in.
This is IFC’s second investment in an Apis fund, following a $25-million investment in Apis Growth Markets Fund II in 2019.
In addition, IFC has invested $15 million in two South African companies backed by Apis, including Adumo and Peach Payments.
In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
In June, DealStreetAsia reported that IFC is considering a proposal to extend a $100-million financing facility to Singapore-based private equity firm Crescent Point Group.