GroFin Summary

GroFin is a pioneering SME development financier that provides integrated business support, growth finance and market linkages to start-up and growing businesses – as a way to catalyse sustainable job creation and inclusive economic growth.

Entrepreneurs in Africa and the Middle East typically struggle to access the finance and skills they need to grow their businesses successfully. In 2004, SF co-founded GroFin, a specialist intermediary that provides the vital support that SMEs (small and medium-sized enterprises) urgently need but cannot obtain from existing financial institutions, serving entrepreneurs who lack access to collateral, track-record or extensive business training.

Business Model

grofin_missing_middle-(1).jpgGroFin supports start-up and growing businesses to expand their operations, purchase new assets or develop new product lines based on the viability of their growth plans, not the availability of collateral. They back businesses whose needs are too large for microfinance and too small for private equity – and take early-stage risk that commercial banks would not consider.

GroFin’s local teams of investment professionals also provide the crucial missing business training, support and advice that entrepreneurs need to achieve success.

Potential clients across multiple sectors are assisted to develop the strongest possible business plans – and those judged capable of viable growth are then provided with mezzanine finance of between $50,000 and $1.5m (typically bespoke medium-term loans structured with cashflow-based incentives).

Local teams of investment professionals provide tailored business support and training for the duration of the investment to help entrepreneurs meet their growth milestones, troubleshoot challenges and upgrade their operations. This includes strategic advice, links to international supply chains and functional expertise in areas such as finance, sales, marketing, compliance and value delivery.

GroFin’s hands-on support enables clients to make better business decisions and achieve their growth targets. By achieving a high success rate, they are able to deliver both financial and social return to a range of investors who seek to use their capital to accelerate inclusive growth.
 

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