Amplify Growth Partnership Launches $100 Million Growth Debt Fund For Tech Firms In MENA

Amplify Growth Partnership has unveiled a new initiative, a $100 million growth debt fund dedicated to supporting technology-driven enterprises in the Middle East, North Africa, and Turkiye (MENAT).

This move is designed to fill the funding gap for companies at crucial stages of development, from Series A to Series C, by providing them with necessary debt capital. The launch signals a significant step towards fostering the expansion of tech-centric businesses within the region.

Leading the helm at Amplify is Sharaf Sharaf, an investment veteran with two decades of experience in managing debt and equity investments across various sectors and regions. He highlighted the unique position of the Amplify Growth Fund to address the needs of the venture and SME sectors in the region, which have traditionally lacked adequate access to debt capital.

He emphasized the collaboration between Ajeej Capital and Nuwa Capital, two pioneering investment firms, in establishing Amplify. Their combined efforts aim to offer innovative debt solutions that cater to the evolving demands of business owners, founders, and entrepreneurs. Sharaf expressed optimism about the fund's future, noting a strong pipeline of deals and the anticipation of announcing a second transaction soon.

The announcement comes in the wake of a record-setting year for debt financing in the MENA region, with 2023 witnessing an unprecedented surge in venture-backed company debt, reaching $757 million. This represents a 262% increase from the previous year, largely driven by a handful of substantial transactions. However, Amplify intends to differentiate itself by focusing on standard-sized deals that address the broader requirements of the venture capital ecosystem, thus offering a more inclusive support system for burgeoning tech companies.

Moreover, the fund's strategy includes allocating up to 20% of its resources to businesses outside of the MENA region that are looking to establish a presence there, as well as to traditional companies integrating technology into their operations. This approach signifies Amplify's commitment to not only local tech innovators but also to fostering a more technologically advanced business landscape across the region.

Amplify Growth Partnership GP Limited is the product of a collaboration between Ajeej Capital and Nuwa Capital, leveraging their combined expertise and networks to unlock new opportunities for Amplify and its portfolio companies. The partnership marks a pivotal step in the region's investment landscape, aiming to empower technology-focused companies to scale their operations and achieve their growth objectives.

The fund's inaugural transaction, involving an investment in an innovative fintech company in the Kingdom of Saudi Arabia, exemplifies Amplify's mission to support the growth capital needs of forward-thinking businesses. This initial deployment of capital sets the tone for the fund's future activities and underscores its commitment to enhancing the technological ecosystem in the MENA region