GroFin is a pioneering development financier specializing in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East. GroFin combines patient capital and specialized business support to grow emerging market enterprises.
GroFin Focus on Small and Growing Businesses (SGBs) that are grossly underserved by other funds or financiers. Delivers a unique integrated solution for patient risk capital and end-to-end business support to start-up and growing businesses at the SME base. GroFin has fund size of US $100+ Million to funding Nigerian micro, small and medium business (MSMEs) across the country.
To be eligible:
- Your business operates in one of the following countries: Nigeria, Ghana, Zambia, Egypt, South Africa, Kenya, Tanzania, Rwanda, Uganda.
- Your business is for profit.
- Your business has a turnover of less than US$ 15 million and assets less than US$ 6 million.
- You require financing between US$ 100,000 and US$ 1.5 million.
- The business is owner-operated and/or the owner is substantially involved in running the business.
Ready to apply?
We are happy to know that you have reached our applications page and are ready to begin your entrepreneurial journey with GroFin.
There are (6 Steps) to completing a GroFin application and we urge you follow each step and to thoroughly read all the materials contained in each step.
Our pricing is open and clear and we will discuss it with you thoroughly during the application process. We work it out on a case-by-case basis taking into account the unique characteristics and risk profile of your business and its owners. We also include our added-value business support. We are usually able to provide an idea of the pricing range within two to three weeks, depending on how quickly you can give us the relevant documents. However, our formal offer letter will set out details of the pricing.
We invest in small and growing businesses that have the ability to scale up and be sustainable as well as create positive impact in the communities in which they operate.
We consider applications for funding from businesses which fulfil our investment criteria as below:
- Geography: We finance and support businesses that operate in countries where GroFin has an operational office namely in South Africa, Zambia, Ghana, Nigeria, Ivory Coast, Senegal, Uganda, Kenya, Tanzania, Rwanda, Egypt, Oman, Iraq, and Jordan, to enable us to offer regular value-adding business support. Applications from businesses that operate in other countries cannot be considered.
- Sectors of focus: The business operates in one of the investment focus sectors of Education, Healthcare, Agri-processing, Manufacturing, Energy, Water/Sanitation and labour-intensive businesses. Other sectors can be considered on a case-by-case basis.
- Business Profile: We typically invest in businesses with these maturity profiles:
- Early stage (1-3 years)
Start-ups are considered when they are backed by an entrepreneur with significant experience, track record and material financial commitment to the venture.
- Early maturity (3-6 years)
- Mature (>6 years)
- Early stage (1-3 years)
GroFin considers businesses in all sectors with exception of those activities that have significant potential negative social and environmental impacts. We also do not invest in financial intermediation businesses or non profits such as NGOs, and community groups. Primary agriculture is only considered if it takes place in a controlled environment and at scale.
- Investment Size: We invest between US$ 100K – US$ 1.5 M in the business, preferably as self-liquidating debt.
- Duration of finance: Typically, 3-8 years. Loan repayment term must be aligned with the purpose of the loan.
- Entrepreneur Profile: The entrepreneur should have significant own investment in the business, have the ability to manage a business – from operations, sales, financial management, administration, and leadership. They must be willing to work with us as a value adding financier and share management information regularly. They must have growth ambition and demonstrate integrity as well as professionalism in their dealings.
- Collateral requirements: Though GroFin has no minimum requirement, we do expect entrepreneurs to (partly) secure the loan if collateral is available. Quality and value of collateral does play an important part in the overall risk assessment. Personal guarantees of the entrepreneur(s) is required.
- Social Impact: The business must be able to have a measurable impact in terms of the number of jobs supported and sustained, female ownership, female employment and semi-/unskilled labour. SMEs that provide indirect job opportunities (e.g. training, skills development) and/or environmental services (water, waste, energy, ecotourism) are also attractive to GroFin.
- Business support: GroFin delivers business support to clients prior to the investment and during the tenor of the loan – focusing on improving business viability, sustainability and growth through identifying material business risks/opportunities across a range of generic areas as identified during the screening/due diligence stage. For this reason, entrepreneurs need to be receptive to receiving advice and implementing recommendations, normally around improving formalisation of their business.