WHAT YOU SHOULD KNOW ABOUT GROFIN FUNDS IN NIGERIA
WHAT YOU SHOULD KNOW ABOUT GROFIN FUNDS IN NIGERIA
What You Should Know About Grofin Funds in Nigeria
With their motto being “success through effective partnership”, GroFin Funds is a financial institution that specializes on giving financial support to small and budding businesses across Africa as well as the Middle East, it achieves this by combining medium term loan capital alongside business support that would add value to your growing business. Through the generation of employment, strengthening of value chains as well as building of markets, their investments brings about great economic growth and has improved the living conditions of the various low- and middle-income countries in where they have their operations.
The GroFin financial institution has over the years partnered with over 30 international financial institutions, organizations and other private investors, this partnership is based on development. In the years of their operation, the partnership has been able to raise cumulative funds worth $500m, towards the funds and programs managed by GroFin. A financial institution that began in 2004, has since its inception invested in about 700 small and medium enterprises and has been able to sustain the jobs of 89,740 people across the wide sphere of business activities within 14 countries in Africa and the Middle East, headquarters is in Mauritius.
THE GROFIN VISION
The aim of this financial institution is to be the leading private development financial institution to the budding owners of successful small-to-medium enterprises, also aim to be a reputable organization which everyone would like be associated with, do business and refer clients to, due to their best performance in-sector.
THE GROFIN MISSION
The mission is basically on serving the undeserving entrepreneurs in the small and budding business sector with risk capital and support in business, to help the entrepreneurs realize their full potential in business which would enable them deliver significant impact to the local communities and help provide a sustainable financial return to the firms funders as well as the shareholders.
THE GROFIN VALUES
- Ethical: Display of honesty, fairness and integrity
- Excellence: Taking Pride in executing quality output
- Entrepreneurial: Championing innovation and risk taking in business
- Passion: The love for the work
- Responsible: The strive to improve the operations of the institution & deepen the impact
THE GROFIN OBJECTIVE
The ultimate objective of the financial institution GroFin is majorly to deliver an efficient and effective solution and financial support to the SMEs at the lower base of the pyramid and transform them into formalized and sustainable businesses that would support the growing rate of employment and thus create a lasting impact on their society. With such an objective, one would definitely say that the goals of the Grofin are well aligned with that of the United Nations Sustainable Development Goals (SDG), especially that of the SDG8 which is Decent Work and Economic Growth. The activities of the institution – providing access to finance, extending non-financial support, that is, business support services, development of entrepreneurial sector, starting and growing well formalized SMEs and lastly the creation of sustainable jobs – these activities helps the institution to contribute towards the attainment of the SDGs in the countries where they operate and in a significant manner.
By and large, the GroFin impact investment model is considered critical in unlocking the impact value of SGBs.
SECTORS OF FOCUS
The GroFin, asides being open to funding SMEs across sectors on the understanding that the consumers at the base of the pyramid need the access to a complete range of goods and services. GroFin majorly focuses on SGBs that operate in education, healthcare, agri-business, manufacturing, and other key services like water, energy and sanitation. It targets these vital sectors because of the impact they would have in directly working towards the SDGs and thereby increasing their capacity to alleviate poverty. Such businesses in the sectors aforementioned are majorly at risk of being unserved or undeserved by traditional financiers, when they undertake capital intensive activities and have a long gestation period before their project comes to fruition. The institutions dual approach of finance and business support gives the high impact SGBs the tools needed to succeed and maximize their own contribution to the community, thereby touching multiple lives at the base of the pyramid.
THE GROFIN MODEL
The development model of the institution has gained a lot of international recognition and several awards – the 2017 SME social impact finance award for Africa by CFI.co, the 2013 SME finance solution award, the 2010 World Business and Development Award, Africa Investor Award for 2007 and 2008–representing a unique approach to providing SMEs with the risk capital, access to markets, skills and the ability to grow.
The Grofin investment model has its origin in entrepreneurship, having been found by an African serial entrepreneur around the needs of fellow market entrepreneurs who are still emerging, having a deep understanding of the factors that drive SMEs to success is central to the GroFin investment model, as is the steadfast belief that the success of the SME leads to impact success.
From start, the GroFin approach was to develop a scalable model in the institution that would deliver an integrated solution of finance and business support to SGBs, in the bid to de-risk the asset class and in parallel to that, to develop befitting funding structures that would address the need for skills and development of knowledge as well as provision of affordable, medium – term capital.
The model was abruptly developed through a 14 years learning process, it is aimed at effectively bringing together private and public capital, thereby leading to a joint effort of development philanthropy, impact investment and institutional investment that is development oriented with deep segment knowledge of GroFin. With the unique value proposition of financial and business support, the institution has been instrumental in converting SME failure rate of 70 – 90% to a success rate of 80% for their supported SGBs.
INVESTORS AND FUNDERS
The institution is a trustee to over 30 international development financial institutions, development organisations as well as other private funders, this institution has raised over $500m cumulative fund, that the company manages through 10 funds and programmes.
THE APPLICATION PROCESS
The GroFin application has a six-step process in completing the form and candidates are hereby requested to go through them thoroughly, the pricing of the institution is open and clear, each business is worked out on a case-by-case basis taking into account the risk profile and unique nature of the business and its owners. Also included, is the value-added business support, the institution provides an idea of their pricing within two to three weeks, depending on the quick delivery of the relevant documents. However, the formal letter given to candidates would also entail the details of the pricing.
To find out more, visit: www.grofin.com
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