Amplify Growth Partnership Targets MENAT Region with Special Focus on GCC
PC: Ajeeb Capital
Dubai witnessed the launch of a $100 million private debt fund for growing technology-focused companies in the MENAT region, but more so in the GCC countries. Amplify Growth Partnership is by DIFC-based asset manager Ajeej Capital and venture capital firm Nuwa Capital. This partnership looks to provide much-needed debt capital for businesses in the region.
This partnership between the two companies looks to enable entrepreneurs and founders to scale their business through this new source of funding. Amplify Growth Partnership will fill the gap that currently exists in the provision of debt capital, especially for companies classified under Series A to Series C-stage companies within the technology sector.
This type of financing has long been defined as a category that has historically underrepresented the debt financing available to companies at such stages of development within the technology sector.
Supporting Tech-Driven Ventures
The core mission of the Amplify Growth Partnership is to accelerate the growth of technology-driven businesses. Firm will be targeting specifically tech companies in the MENAT region; vital financing for scaling their efforts, and historically, debt capital has proven elusive to most entrepreneurs and early-stage ventures, which limited their ability to expand operations.
Amplify has already concluded its first transaction, toward this aim. Though the company’s name is not public, the transaction was indeed with a fintech company in Saudi Arabia, showing the readiness of the fund to commit capital in high-growth markets in the region.
Addressing a Longstanding Capital Gap
According to Sharaf Sharaf, the head of the Amplify Growth Partnership fund at Ajeej Capital, the fund addresses an essential void in the financial ecosystem for the MENAT region. It is traditionally underserved in terms of debt capital in the venture capital and SME sectors. The group hopes that the product will eventually close this gap by providing debt capital to the said businesses, thereby giving them a chance to scale and grow outside the limitations that might be imposed on them through equity financing alone.
Venture and SME sectors have been underserved when it comes to debt capital,” Sharaf noted. This, he believes, will unlock new opportunities for founders to expand their businesses while optimising capital structures to allow for growth without diluting ownership or giving up significant equity stakes.
Expanding the Fund’s Reach
Although the focus of the Amplify Growth Partnership appears to be on supporting tech-focused companies within the MENAT region, the scope of the fund opens up far wider than that: up to 20% of capital will be allocated to companies outside of the MENAT region that look to set up or expand their business there. The application of technology also expands to enable more funding for traditional enterprises implementing technology into their business models.
With a broader scope, it seems that Amplify Growth Partnership not only aims at encouraging local innovation but is also aiming to be a supporting hand to international businesses looking to tap into the MENAT market, particularly into the booming GCC region. In doing so, Amplify will contribute more towards the emerging ecosystem of technology-driven businesses in the region, making innovation and economic growth go further.
Promoting Regional Growth
The Amplify Growth Partnership comes into life at a time of phenomenal growth in the MENAT region, and specifically the GCC. Saudi Arabia and the UAE are focusing increasingly on digitization, entrepreneurship, and creating an ecologically enhanced environment that nurtures tech start-ups and SMEs. Fundamentally, this fund is positioned to enable that vision through providing businesses with the funding needed to scale and succeed.
The alternative financing sources magnify its intention to attract more innovative companies to the region and further support them financially in enabling growth. The initiative will, therefore, fit into regional efforts in diversifying economies, reducing dependency on oil, and promoting knowledge-based industries.
A Strategic Collaboration
The Ajeej Capital and Nuwa Capital collaboration strategy is strategic in nature. Ajeej Capital brings management experience in fund management and a good understanding of regional markets from its Dubai International Financial Centre base. Meanwhile, Nuwa Capital offers venture capital know-how and a deep understanding of the needs of startups and growth-stage businesses that makes it an ideal choice as advisor to the Amplify Growth Partnership. By combining their strengths, the two firms will be adequately prepared to deliver against the objectives of filling the gap in debt capital to support growth and innovation in the MENAT region. Amplify Growth Partnership will become an effective venture capital-based player in the region, providing the necessary resources for start-ups to grow and succeed.
