GroFin Expands Pool of SME Funding to $323 million, Enters Three New Countries
Wednesday, March 21, 2012
GroFin, the multinational pioneer of growth finance working to create real impact through the support of small and medium businesses, has announced a growth in funds under management from $260 million to $323 million. These funds are invested in supporting entrepreneurs and business people to start or grow a business. The company also announced that it will be launching three new offices in 2012 in Zambia, Jordan and a regional office serving the UAE.
Since launching in 2004, GroFin has established a reputation of being a leading provider of finance and business support to entrepreneurs and business owners in Africa and the Middle East.
Guido Boysen – CEO GroFin Africa adds “We are thrilled to announce an increase in the funds we have available, as well as our entry into three new markets rich with potential. We have a strong foundation in place, a proven and scalable model and a firm commitment to make a lasting impact in the growth of the SME sector.”
GroFin’s choice to invest in entrepreneurs and businesses that are locally owned and managed in the markets in which it operates, is rooted in the vision that these businesses hold the potential to create sustainable economic and social impact. However while this sector of the market is theoretically best able to empower and mobilise societies, the majority of these businesses fail to survive past their early years of operation.
Mohamed Toki – CEO GroFin MENA explains “Many so-called SMEs find themselves in the ‘missing middle’ where they do not have the collateral required for traditional secured lending and are too small for private equity but too large for micro-finance. Entrepreneurs and businesses in this sector are underserviced with few capable partners offering the combination of risk finance, experienced business support, and market linkages required to succeed. Recognising both the challenge and the opportunity GroFin was formed to successfully service this sector”.
GroFin’s unique viability based model is recognised as a pioneering model globally in the provision of risk based finance. The success of the GroFin business model has been recognised by the UN Development Programme, who in 2010 recognised GroFin for its contribution to developing local businesses, and in so doing promoting the Millennium Development Goals. The business also won the Africa Investor Awards consecutively for two years. The GroFin model is furthermore widely used as a benchmark and role model for growth finance to SMEs.
Source: Press Release