Dealflow | October 10, 2023

LeapFrog’s emerging consumer fund secures $100 million commitment from IFC

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 10 — LeapFrog Investments has secured a $100 million commitment from the International Finance Corp. for its emerging consumer fund, the firm’s fourth, which LeapFrog says is on track to reach a final close of $1 billion by next February 29 – Leap Day. The fund has received commitments from a global roster of LPs including Ford Foundation, Temasek, Prudential, Eli Lilly, European Investment Bank and others.

“The fundraise has shown us that impact investing as a strategy has reached the boardrooms of the world’s largest asset allocators and managers in diverse industries,” said LeapFrog’s Andy Kuper.

The growth equity fund will invest in healthtech and fintech businesses targeting underserved populations, particularly women in emerging markets. With its  gender-lens objectives, the fund qualifies for the G7’s 2X Challenge and IFC’s Invest2Equal program.

Underserved consumers

LeapFrog has backed four companies through the new fund, including Redcliffe Labs for low-cost medical tests in India and Sun King for off-grid solar financing in Africa. Last month, the fund invested $50 million to help Singapore insurtech venture Bolttech deepen its customer base of lower-income and emerging consumers.

“The world’s four billion emerging consumers are rising in incomes and prosperity, and we need to make sure that growth is sustained, inclusive and green,” Kuper said.

Earlier this year, LeapFrog pledged to invest $500 million over the next decade in startups developing low-carbon solutions for emerging consumers in Asia and Africa. 

Strategic LPs

Half of the International Finance Corp.’s commitment will be allocated to the new fund. The rest will allow IFC to co-invest alongside LeapFrog in select portfolio companies. IFC’s William Sonnenborn says LeapFrog’s fund will “attract other commercial investors to this market segment.”

IFC committed a combined $65 million to LeapFrog’s first and third funds. “We look forward to the next 10 years of working together via this new fund,” said Kuper.