Ajeej Capital and Nuwa Capital launch $100 million growth debt fund for tech in MENA

💸 Ajeej Capital and Nuwa Capital have launched Amplify Growth Partnership, a new $100 million growth debt fund focused on addressing the debt capital gap for Series A to Series C tech businesses in the region.

• Amplify is specifically targeting market-standard deals, contrasting with the larger venture debt transactions that fuelled MENA's $757 million surge in 2023.
• It joins the ranks of other regional VCs, such as Shorooq Partners, who announced their own $100 million venture debt fund back in May 2024.

💰 Investor low-down: The fund will be led by Sharaf Sharaf, a veteran with two decades of experience in debt and equity investments. Sharaf’s previous roles include co-heading Gulf Capital’s $220 million credit fund and establishing NBK Capital’s mezzanine debt fund. 

⚙️ Breaking it down

Amplify Growth Partnership seeks to invest in companies that have demonstrated market traction and are in the scaling phase. Companies must be VC-backed, have $5 million or more in revenue, recently raised an equity round, and have a manageable cash burn rate.

• Amplify offers loans starting at $3 million, with terms of 3-4 years and flexible amortisation options. These loans will be disbursed in 2-3 tranches and may include a warrant component to align incentives between Amplify and its portfolio companies

Up to 20% of the fund will be allocated to companies outside MENA looking to enter the region, as well as traditional businesses integrating technology into their operations.

🔮 Flashforward

The fund's first deal has already closed, a fintech company in Saudi, though details on the recipient have not been disclosed, and expects to announce its next investment shortly.