Top
September 13 2017

LeapFrog companies reach 111 million people and grow 43% in impact investing milestone

  • Ten years on since founding, LeapFrog’s portfolio of companies reach 111 million people across Africa and Asia
  • 93.8 million are emerging consumers earning less than $10 PPP per day
  • Companies achieved 43% annual revenue increase per year from time of investment
  • Companies grew their emerging consumer base by 67% per year
  • Companies deliver 184 financial and health services in the growth markets of Asia and Africa
  • Proof of impact investing exceeds the ambitions set by President Clinton ten years ago
  • LeapFrog named last week alongside Apple as one of Fortune Magazine’s top five companies changing the world

London 13 September 2017:

LeapFrog Investments, the Profit with Purpose investment group, today announces its companies have reached 111 million people, marking an impact investing milestone. The figures surpass the targets set a decade ago when Dr. Andrew Kuper, LeapFrog’s founder and CEO, pledged on stage with President Bill Clinton to impact the lives of 25 million low-income people by 2020 and achieve top-tier results through Profit with Purpose investing.

Dr. Kuper also pledged then to raise $100m to invest in purpose-driven businesses. Today, LeapFrog manages over USD $1 billion, making it the largest equity impact investor for emerging markets. The capital has so far been invested in growing 20 partner companies that deliver financial services and healthcare in 33 countries. Last week, LeapFrog was named in Fortune Magazine as one of the top five companies changing the world, alongside Apple, Novartis, DSM and JP Morgan.

A decade of focus on the growth markets of Asia and Africa has driven LeapFrog’s performance. Among those reached by LeapFrog partner companies, 93.8 million are classified as emerging consumers, earning less than $10 a day PPP. McKinsey Global Institute estimates that by 2025 the number of consumers in emerging markets will grow to 4.2 billion people.

Partner companies have achieved remarkable growth by tapping this historic opportunity. LeapFrog companies:

  • Increased revenues by 43% a year on average from time of investment
  • Increased their emerging consumer base by 67.2% on average per year
  • Deliver 184 health and financial services
  • Provide healthcare or health insurance to 7.8 million people
  • Support 114,626 jobs and livelihoods

“Emerging consumers represent the highest growth segments globally, and they are consuming essential health and financial services at unprecedented rates. The pace at which our portfolio companies have reached 111 million people is testament to the scale that can be realised through focusing on this economic destiny,” said Dr. Kuper. “At the core of our business is a commitment to understanding the needs of emerging consumers and how companies can best serve them, which in turn enables our portfolio to deliver outsize rates of growth and returns.”

LeapFrog’s specialist operational method of investing is distinct in the private equity and impact investing landscape. Embedded in the deal teams are specialists including actuaries and doctors. The teams are also backed by a research and customer insights function and by LeapFrog Labs, which drives R&D and catalyzes innovation.

LeapFrog partner companies are bringing disruptive technologies to bear that will impact developed markets too. For example:

  • BIMA, the global leader in mobile-delivered insurance, has expanded to 15 countries in 6 years, underwriting policies and paying out claims in minutes, and doubling per capita insurance penetration in Bangladesh and Ghana
  • Cignifi is using mobile data to underwrite loans, providing credit scores for over 100 million people who lack bank accounts in Asia and Latin America, resulting in 13 million people being offered financial tools
  • Goodlife Pharmacies is using technology and data analytics to provide quality medications combined with tele-doctor services across East Africa
  • AllLife was the first insurer in the world to exclusively provide whole life cover for people living with HIV and diabetes, in South Africa. In the UK, AllLife launched its pioneering insuretech diabetes cover with Royal London, the UK’s largest mutual insurer

LeapFrog’s industry-leading measurement framework drives a rigorous assessment of financial and social outcomes, and embeds evaluation of both impact and profit in investment team activity and investor reporting. LeapFrog collaborates on impact measurement initiatives with the World Bank, IFC, World Economic Forum and the Global Impact Investing Network, among others.

LeapFrog’s investment approach has had a transformative impact on the lives of millions of women across Africa and Asia in particular, who are often financially and socially excluded:

  • Of over 111 million portfolio company customers, 45 million are women
  • Over 25,000 women are full-time or part-time employees or agents for partner companies, including five female CEOs
  • Several partner companies focus almost exclusively on largely rural female customers, such as IFMR Capital and Fincare which provide credit to millions of largely rural women in India
  • According to McKinsey Global Institute, of the 1.6 billion emerging consumers accessing financial services for the first time to 2025, more than half will be women.

“Leaps in technological innovation offer an unprecedented opportunity to drive health and financial inclusion on a massive scale worldwide, and generate outsize returns for investors in the process. That remains our mission,” said Dr. Jim Roth, LeapFrog’s Co-Founder. “The next decade will prove transformative not just for many societies but for the capital markets, as people recognise the benefits and competitive advantage of purpose-driven business.”

Sources:
McKinsey Global Institute, Winning the $30 Trillion Decathlon: Going for Gold in Emerging Markets
McKinsey Global Institute,  Digital Finance for All: Powering Inclusive Growth in Emerging Economies

“Emerging consumers represent the highest growth segments globally, and they are consuming essential health and financial services at unprecedented rates. The pace at which our portfolio companies have reached 111 million people is testament to the scale that can be realised through focusing on this economic destiny.”

Dr. Andrew Kuper, CEO and Founder, LeapFrog