GroFin is a pioneering private development finance institution specialising in the finance and support of small and growing businesses (SGBs). Their investments and business support help to generate employment, strengthen value chains, and develop markets to bring about inclusive growth and improved living conditions in the low- and middle-income countries where they operate.
Since its inception in 2004, they have established a wide network of local offices in 15 countries throughout Africa and the Middle East. Their SME investments number over 700 and have sustained over 90,900 total jobs across several sectors and industries, namely: healthcare, education, agribusiness, manufacturing, key services (water, waste & energy), food & accommodation, construction, wholesale & retail, and professional services.
They have the support of 34 international development finance institutions, development organisations, foundations, large companies and private funders with committed funding of nearly US$ 500 million.
VISION
They aim to be the leading financial services institution to entrepreneurs of successful small to medium-sized enterprises – a reputable organisation that everyone wants to be associated with, do business with and refer clients to, due to their best in-sector performance.
MISSION
Serving the underserved entrepreneurs in the small and growing business sector with risk capital and business support, helping them to realise their full business potential and deliver quantifiable social and economic development impact.
VALUES
ETHICAL: They display honesty, fairness & integrity
EXCELLENCE: They take pride in executing quality work
ENTREPRENEURIAL: They champion innovation & risk taking
PASSION: They love what they do
RESPONSIBLE: They strive to improve operations & deepen impact
PURPOSE
Small and medium-sized enterprises make up the lion’s share of the private sector in developing countries and are a key driver of both economic and social development. However, despite the SME sector’s capacity to provide employment and support multiple livelihoods, these businesses are prone to high failure rates: as many as 70 – 90% do not survive past their fifth year of operations.
Banks and other institutional investors are reluctant to invest in these businesses, dooming them to the so-called ‘missing middle’ where they are considered too big for micro-finance, too small for private equity funds, and too risky for traditional security-based lenders.
GroFin was established with the objective to provide a unique solution of finance and support to SMEs in the missing middle to transform them into formalised and sustainable businesses that support employment and thus create lasting impact.
GroFin’s purpose is to develop a scalable, replicable and sustainable business model for the SME missing middle. Through developing successful SMEs at scale, GroFin aims to create jobs and measurable impact in line with Sustainable Development Goal 8: Decent work and economic growth.
OBJECTIVE
Their definitive objective is to convey a productive and viable integrated solution of finance and support to base-of-the-pyramid SMEs and to transform them into formalized and sustainable businesses that support employment and along these lines make enduring impact.
GroFin’s goals are all around lined up with the United Nation’s Sustainable Development Goals (SDG), particularly SDG 8 (‘Decent Work and Economic Growth’).
Thusly, their operations –, for example, giving access to finance, broadening non-financial support (‘business support services’), creating entrepreneurship, beginning and becoming formalized SMEs, and making sustainable jobs – help them to contribute altogether towards the achievement of the SDGs in our nations of operations.
Against the setting of the enormous degrees of funding required to accomplish the Sustainable Development Goals, it is basic that private capital be sent at more prominent scale. That is the reason they consider the GroFin impact investment model basic to opening the impact value of SGBs.
THE GROFIN MODEL
GroFin’s business model depends on the promise to give customers support past finance. This implies they take an integrated product and service approach which furnishes entrepreneurs with medium-term risk finance, just as improving pre-and post-investment business development help.
A profound comprehension of the factors that drive SME success is key to this model, similar to the ardent conviction that SME success prompts impact success. They intend to unite private and public capital, joining the powers of development philanthropy, impact investment and development-arranged institutional investment with their own profound portion information.
GroFin’s SME development model has increased international acknowledgment and a few awards (2018 Finance for the Future Awards – Building Sustainable Financial Products category, 2018 Islamic Economy Award – SME Development category, 2018 Global SME Finance Awards – Honorable Mention for Product Innovation of the Year category, 2017 SME Social Impact Finance grant for Africa by CFI.co, the 2013 SME Finance Solution Award, the 2010 World Business and Development Award and the Africa Investor Award for 2007 and 2008).
SECTORS OF FOCUS
While they are available to funding SMEs across sectors on the understanding that purchasers at the base of the pyramid need access to a total scope of goods and services, GroFin centers around SGBs working in education, healthcare, agri-business, manufacturing and key services (water, energy and sanitation. Grofin focuses on these fundamental needs sectors in light of the impact these businesses have in legitimately working towards the SDGs and in this manner their ability to mitigate poverty.
Such SGBs are especially at risk of being unserved or underserved by traditional lenders as they attempt capital intensive exercises and have long development periods for their tasks to work out as intended. GroFin’s double methodology of finance and business support gives such high-impact SGBs the devices they have to succeed and augment their commitment to the network, along these lines touch various lives at the base of the pyramid.
WHAT GROFIN OFFERS
GroFin offers a combination of finance, master business support, and direction to entrepreneurs with small and medium enterprises (SMEs). Their finance is tweaked to suit the one of a kind conditions of every customer. With GroFin, you get more than finance — you are additionally offered access to mastery to improve the probability of your prosperity.
They manage this with you through a demonstrated procedure that fortifies your plan by concentrating on tending to the issues that possibly undermine your business’ capacity to make benefits. They additionally offer help and direction in thoroughly planning and driving positive cash flow in your business.
With the suitable financing, a sound business plan and our support in dealing with your cash flow, your business is in a position where benefits increment and your business succeeds. GroFin offers a combination of finance, master business support, and direction to entrepreneurs with small and medium enterprises (SMEs).
Our finance is redone to suit the exceptional conditions of every customer. With GroFin, you get more than finance — you are additionally offered access to aptitude to improve the probability of your prosperity. We manage this with you through a demonstrated procedure that reinforces your plan by concentrating on tending to the issues that conceivably undermine your business’ capacity to make benefits.
We additionally offer help and direction in thoroughly planning and driving positive cash flow in your business. With the fitting financing, a sound business plan and our support in dealing with your cash flow, your business is in a position where benefits increment and your business succeeds.
WHY SHOULD YOU AS AN ENTREPRENEUR TRUST GROFIN?
Begun in 1999, GroFin is an honor winning association with over 16 years’ understanding and has 14 offices across Africa and the Middle East. GroFin is likewise joined forces by other experienced associations, for example, the SGB Fund is managed by GroFin and incorporates advertisers and investors, for example, Shell Foundation, KfW, Norfund, and the DGGF.
On a normal, 70–90% of SMEs fail in their initial three years of activity. Entrepreneurs don’t approach finance or have access to the business assets they need to thrive. GroFin’s inventive model tends to these requirements — assisting with developing sustainable businesses and make undeniable impact. Until now, GroFin has completed 825 customer deals and has given business support to more than 7,000 entrepreneurs with a success rate of over 80%.
PREPARED TO APPLY?
There are (6 Steps) to finishing a GroFin application and we ask you follow each progression and to altogether peruse every one of the materials contained in each progression.
Their pricing is open and clear and we will examine it with you altogether during the application procedure. It is worked out dependent upon the situation considering the special qualities and risk profile of your business and its proprietors.
They additionally incorporate their additional value business support. They are typically ready to give a thought of the valuing range inside a few weeks, contingent upon how rapidly you can provide the important documents. Be that as it may, their formal offer letter will set out subtleties of the estimating.
INVESTMENT CRITERIA
GroFin invest in small and developing businesses that can scale up and be sustainable as well as make positive impact in the networks in which they work.
They consider applications for funding from businesses which satisfy their investment criteria as listed below:
Geography: They finance and support businesses that work in nations where GroFin has an operational office to be specific in South Africa, Zambia, Ghana, Nigeria, Ivory Coast, Senegal, Uganda, Kenya, Tanzania, Rwanda, Egypt, Oman, Iraq, and Jordan, to empower us to offer additional value-including business support. Applications from businesses that work in different nations can’t be considered.
Sectors of center: The business works in one of the investment focus sectors of Education, Healthcare, Agri-handling, Manufacturing, Energy, Water/Sanitation and labour intensive businesses. Different sectors can be considered dependent upon the situation.
Business Profile:They ordinarily invest in businesses with these maturity profiles:
Early stage (1-3 years)
New companies are viewed as when they are upheld by an entrepreneur with huge experience, track record and material financial promise to the venture.
Early maturity (3-6 years)
Develop (>6 years).
GroFin considers businesses in all sectors except those operations that have critical potential negative social and environmental impacts. They likewise don’t invest in financial intermediation businesses or non benefits, for example, NGOs, and local gatherings. Primary agriculture is possibly considered on the off chance that it happens in a controlled situation and at scale.
Investment Size: Grofin invest between US$ 100K – US$ 1.5 M in the business, ideally as self-liquidating debt.
Duration of finance: Typically, 3-8 years. Loan repayment term must be lined up with the end goal of the loan.
Entrepreneur Profile: The entrepreneur ought to have huge personal investment in the business, can manage a business – from tasks, sales, financial management, administration, and leadership. They should be happy to work together as a value including lender and share management information normally. They should have growth aspiration and exhibit uprightness just as professionalism in their dealings.
Collateral requirements: Though GroFin has no minimum necessity, we do anticipate that entrepreneurs should (halfway) secure the loan if collateral is accessible. Quality and value of collateral plays an important part in the general risk assessment. Individual certifications of the entrepreneur(s) is required.
Social Impact: The business must have the option to have a quantifiable impact in terms of the quantity of jobs supported, female possession, female employment and semi-/unskilled work. SMEs that give aberrant openings for work (for example training, aptitudes development) as well as environmental services (water, squander, energy, ecotourism) are additionally appealing to GroFin.
Business support: GroFin conveys business support to customers before the investment and during the tenor of the loan – concentrating on improving business reasonability, maintainability and growth through recognizing material business risks/opportunities over a scope of conventional territories as distinguished during the screening/due constancy arrange. Hence, entrepreneurs should be responsive to getting counsel and executing recommendations, typically around improving formalization of their business.
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PRE-ASSESSMENT QUESTIONNAIRE
Visit their official website : www.grofin.com and fill in the pre-assessment questionnaire. This is the next step to see if you are eligible for GroFin’s services. Note that you need to complete this step in order to proceed to the important checklist and the final step of submitting your Application (either online or through our download application form).
You can then apply for funds online if eligible or better still, you can visit their offices in Nigeria located both in Lagos and Port Harcourt.
| GroFin Nigeria, Lagos |
| General manager e-Mail address |
info.nigeria@grofin.com |
| Generic e-Mail address |
info.nigeria@grofin.com |
| Telephone number |
+234 705 696 6666; +234 909 000 1346 |
| Fax number |
– |
| Physical address |
Reals Plaza (Ground Floor) Plot 1 Dosumu Street, Off Hakeem Balogun Street, CBD, Agidingbin, Ikeja, Lagos |
| Postal address |
PO Box 51597 Falomo, Ikoyi, Lagos |
| GroFin Nigeria, Port Harcourt |
| General manager e-Mail address |
info.portharcourt@grofin.com |
| Generic e-Mail address |
info.portharcourt@grofin.com |
| Telephone number |
+234 705 295 1455 / +234 806 554 9089 |
| Fax number |
N/A |
| Physical address |
77 Stadium Road, Port Harcourt, Rivers State |
| Postal address |
77 Stadium Road, Port Harcourt, Rivers State |
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