Norfund invests $20 million in Apis Growth Markets Fund III to propel fintech expansion in developing economies

Norfund, the Norwegian investment fund specializing in developing markets, has recently declared a significant investment of $20 million into the Apis Growth Markets Fund III. Managed by Apis Partners, a private equity firm based in the UK, this fund is dedicated to investing in technology-driven financial service enterprises with high growth potential across the globe.

Espen Froyn, who holds the position of Senior Vice President for Financial Institutions – Africa at Norfund, expressed that Apis Partners’ commendable history of nurturing and aiding fintech startups is in perfect harmony with Norfund’s mission to enhance financial inclusion within emerging markets.

He stated, “Our collaboration with Apis allows us to tap into their extensive fintech expertise and opens doors for co-investment opportunities that align with the fund’s objectives.”

With the aim of addressing the financial needs of underserved populations, Norfund broadened its investment strategy in 2022 to include fintech ventures in addition to traditional financial institutions. Norfund is actively involved in backing fintech entities that specialize in areas such as digital lending, neobanking, embedded finance, insurance technology, and payment systems, particularly in regions like sub-Saharan Africa and Southeast Asia.

The fund typically provides direct investment in promising fintech startups, offering both loan and equity financing that ranges between $5 million and $20 million, focusing on their growth phases starting from Series A. Norfund’s recent portfolio includes investments in diverse fintech firms like Wave Money, Lula Lend, Amartha, Funding Societies, and AwanTunai.

By partnering with fintech-focused funds such as Quona Capital and Integra Partners, Norfund has been able to broaden its investment horizon to encompass ventures at even earlier stages of development. The commitment to Apis Growth Markets Fund III is a strategic step for Norfund, as it seeks to diversify its investment portfolio by including a broader array of established fintech companies that demonstrate robust growth trajectories.