Swedfund invests USD 32 million in Apis Growth Markets Fund III, a fund serving low- and middle-income consumers across Africa, South and Southeast Asia.
The investment contributes to enhanced digitalisation and innovation as well as improved access, quality, and affordability of financial services and to the creation of decent jobs.
"Through this investment we further contribute to the growth of companies with innovative and digitally enabled business models and to generation of jobs, tax revenues, and good business practices. This is our third investment in an Apis fund since 2015, a fund manager with a strong financial record", says Sofia Gedeon, Investment Director Sustainable Enterprises, Swedfund International.
The fund will invest in countries such as Egypt, India, Indonesia, Kenya, Nigeria and South Africa. Through Apis’ fund structure, the investment contributes to further capital mobilization to the targeted growth markets, acting as a bridge for additional global capital that otherwise rarely would access them. This makes the impact of the investment larger. Apis has an established ESG- (Environment, Social, Governance) and Impact Agenda, which puts the investment well in line with Swedfund’s strategy. By setting clear requirements and working together with the fund, the investment will contribute to developed sustainability aspects, such as increased women economic empowerment and decent jobs.
About the fund
Apis was established in 2014 as a growth focused fund manager targeting companies in the intersection of finance and technology in Asia and Africa. Apis Growth Markets Fund III is targeting a fund size of USD 500m. The fund is seeking to allocate capital to 10 to 15 investments, with an average ticket size of USD 60-70m (including capital mobilized from a separate fund with a global mandate, targeting the same sectors, that will co-invest alongside Apis Growth Markets Fund III). It is expected that together Apis Growth Markets Fund III and the global fund will deploy over USD 800m into growth markets investments.Swedfund is investing alongside other DFIs such as BII, DEG, IFC and OeEB.