- Amplify Growth Partnership launched a $100 million growth debt fund for technology-focused companies in the MENA region and Turkey.
- It aims to bridge the debt capital gap for Series A to Series C businesses, targeting market-standard-sized transactions.
- The fund is led by Sharaf Sharaf, an investment professional with 20 years of experience in debt and equity investments.
- Up to 20% of the capital will be allocated to companies outside MENA looking to enter the region or traditional enterprises adopting technology.
Amplify Growth Partnership has launched a $100 million growth debt fund aimed at supporting technology-driven companies across the Middle East, North Africa, and Turkey (MENA) region. This initiative seeks to address the growing demand for debt capital in the venture and small-to-medium enterprise (SME) sectors, which have traditionally struggled to secure adequate funding.
First Successful Transaction
The fund recently achieved a significant milestone by closing its first transaction. The capital was deployed to fund the growth requirements of a fintech company in Saudi Arabia. This marks the beginning of Amplify’s effort to bridge the gap in debt financing for technology companies that are in the early growth stages.
Filling the Debt Capital Gap
Amplify Growth’s primary goal is to close the existing debt capital gap in the region by providing much-needed funding to technology-driven companies at the Series A to Series C stages.
The demand for debt capital in MENA has seen a sharp increase in recent years. In 2023, the amount of debt provided to venture-backed companies in the region rose to $757 million, a 262% jump from 2022. However, this growth was largely fueled by a few large transactions, leaving many smaller companies without access to the capital they need.
Amplify aims to focus on standard-sized transactions, which cater to a broader range of companies within the venture capital ecosystem.
Led by an Experienced Professional
Amplify’s operations will be led by Sharaf Sharaf, an investment professional with over 20 years of experience in both debt and equity investments. Sharaf will oversee the fund’s origination, deal evaluation, and portfolio management. With his extensive background in managing investments across different sectors and regions, Sharaf is well-positioned to guide Amplify Growth in achieving its objectives.
Sharaf expressed his excitement about the new fund, saying, “The Amplify Growth Fund is designed to address the growing demand for debt capital in the venture and SME sectors, which have historically been underserved. By bringing together the expertise of Ajeej Capital and Nuwa Capital, we aim to build a lasting franchise that empowers companies to access the growth capital they need to scale their businesses.”
Targeting Technology-Driven Companies
The primary focus of Amplify’s investments will be on companies with proven market demand that are actively scaling their businesses. These companies are typically in the Series A to Series C stages, where access to growth capital is crucial for their continued expansion.
While the majority of the fund’s capital will be directed toward companies within the MENA region, Amplify is also open to investing in businesses outside of MENA that are looking to enter the region. Additionally, up to 20% of the fund will be available for traditional enterprises integrating technology into their operations, allowing them to modernize and grow.
Building a Strong Investment Ecosystem
Amplify Growth’s partnership with Ajeej Capital and Nuwa Capital highlights its commitment to building a robust investment ecosystem in the region. By combining the expertise and resources of these two leading investment firms, Amplify aims to create a sustainable platform that supports the growth of technology companies in the MENA region.
Overall, the Amplify Growth Fund is set to play a pivotal role in accelerating the growth of technology-driven businesses across the MENA region, filling a crucial gap in the debt capital market. With its focus on standard-sized transactions and support for both local and international companies, Amplify is positioned to make a significant impact on the region’s venture and SME sectors.
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