Amplify Growth Partnership on Wednesday, announced the launch of a $100 million growth debt fund.
The fund aims to provide debt capital to technology-focused companies across the Middle East, North Africa, and Turkey (MENAT) region.
It also announced that it has successfully closed its first transaction, deploying capital to fund the growth capital requirements of an innovative fintech company in Saudi Arabia.
Amplify seeks to bridge the existing debt capital gap and accelerate the growth of technology-driven businesses in the Series A to Series C stages, the venture said.
“The Amplify Growth Fund is poised to meet the region’s growing demand for debt capital in the venture and SME sectors, which are areas that have been historically underserved,” Sharaf Sharaf, overseeing origination, deal evaluation and portfolio management at Amplify, said.
“We will provide innovative debt solutions to meet the evolving needs of owners, founders, and entrepreneurs,” he said.
Sharaf said with a strong pipeline of deals and an upcoming announcement of a second deal, the fund is on track to make a lasting impact on the market.
Amplify unites two pioneering investment firms, Ajeej Capital and Nuwa Capital, who together with the Amplify team, seek to build an enduring franchise that empowers companies to access the growth capital they need to realize their ambitions.
The fund’s primary investment focus will be on companies with proven market demand that are actively scaling their business.
Up to 20 per cent of Amplify’s capital will be available for businesses outside of MENA aiming to enter the region and for traditional enterprises integrating technology into their operations.
Although 2023 marked a milestone year in MENA for debt to venture-backed companies, with a significant rise to $757 million — up 262 per cent from 2022 figures — the growth was primarily fuelled by a few mega-transactions that dominated the sector.
In contrast, Amplify will focus on market-standard sized transactions that cater to the broader needs of the VC ecosystem, it said.
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