DEG is an anchor investor in fintech fund

In South East Asia, the predominantly young population is already open to internet-based services, but at a time of social distancing, these services are now in particularly high demand. For a number of years now, the fund manager Integra Partners has been investing in local early-stage companies that use digital technology to drive transformation and inclusion in the financial services sector.

With its investment of up to USD 8 million in Integra Partners Fund II L.P., DEG played a role as an anchor investor in the successful first closing of the fund. “By participating in the first closing as an anchor investor, and as the first international development finance institution to invest in the fund, DEG has sent a positive signal to the market. The investment helps to give other investors confidence in the fund manager's sustainable approach, namely deploying technology to promote inclusion in terms of finance and healthcare and placing emphasis on good corporate governance as well as environmental and social standards,” explains Dr Felix Schneider, customer relationship manager at DEG. This gives fund companies the opportunity to grow in the early stages, offer good employment conditions and generate local income over the long term. Another closing is expected to take place in the second half of 2021, with the involvement of other DFI partners.

In addition to providing financing, DEG has assisted the fund in introducing an environmental and social management system and helped it to qualify as a 2X Challenge investor – an initiative recognising investors that provide women in developing countries with better access to leadership opportunities, quality employment, financing, business support, and products and services. 2X Challenge investments have gone, for example, to a range of female (co-)founders and senior management teams, as well as to companies mainly employing women (share of over 50%).

Last year, DEG already joined forces with Integra Partners to co-invest in Flow, a company providing innovative credit management services in South East Asia and India.

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