Sylvia Duruson
Impact investment firm LeapFrog Investments plans to raise $1 billion for a new fund to back financial services and healthcare companies in emerging markets like Africa.
The new Emerging Consumer Fund IV has already secured commitments from major backers like the European Investment Bank ($60 million) and International Finance Corporation ($50 million). Other investors include Prudential Financial and AIA Group.
LeapFrog will make initial investments of $30-70 million in around 20 high-growth companies, allocating 40% of the fund to Africa. It is also targeting South and Southeast Asia.
According to global head Daniel Stacey, the fund will take significant minority or majority stakes and work closely with portfolio companies to help them reach growth and profitability goals.
LeapFrog has already deployed some of Fund IV into companies like African off-grid solar provider Sun King and Indian healthcare chain Redcliffe Labs. Its current African investments also include fintechs Jumo and Interswitch.
The new fund aligns with LeapFrog’s focus over 15 years on impact investing to empower low-income consumers. Stacey said the firm sees major opportunities in financial services and healthcare.
“Smartphone penetration and falling data prices have accelerated digital financial services growth in our markets,” he explained. “Likewise, lifestyle diseases are driving transformation in consumer healthcare and preventative medicine.”
In financial services, LeapFrog targets sectors like insurance, banking, credit and digital solutions. For healthcare, it is interested in diagnostics, pharmaceutical distribution, clinics and digital health.
Stacey added these are trillion-dollar industries with growth runways spanning decades, especially as digital disruption increases consumer access.
With its extensive emerging markets experience and substantial capital, LeapFrog is positioned to scale companies, expanding financial inclusion and healthcare access. The $1 billion fund will support African startups pursuing transformative change.
For founders in fintech, insurtech, healthtech and more, LeapFrog offers both deep pockets and strategic guidance to achieve lasting social impact along with commercial success. Its focus aligns with increasing consumer demand for financial and medical services across the continent
