Technology investor Amadeus Capital Partners has held a first close at $75 million on the Amadeus IV Digital Prosperity Fund, the first of its fourth generation of funds.
The fund will invest in late stage venture and growth companies, mostly in mature markets, developing online and mobile applications and services targeted at the rapidly expanding middle classes in Africa, the Middle East, Asia and Latin America, says MTN. Further investment is anticipated from other institutional and corporate investors interested in the fund's strategy, it adds.
The cornerstone investor in the fund is MTN Group, which has operations in 22 countries and is the largest operator in Africa and the Middle East, with almost 200 million subscribers.
Amadeus already has more than 20 portfolio companies with customers in Asia, Africa and Latin America, including Cambridge Broadband Networks, Edgeware, Celltick and ip.access. MTN approached Amadeus when it had started to develop investment opportunities in online and mobile applications and services relevant to the needs of an emerging middle class of consumers.
The companies worked together to refine an investment proposal focused on technologies that leap-frog desktop applications and services, to those designed specifically for 'mobile first' and the technologies and platforms that underpin such services, says MTN in a statement.
Amadeus has identified 19 developing countries as target markets for innovative online and mobile services. These are Brazil, Chile, Colombia, Mexico, Uruguay, Russia, India, Indonesia, Kazakhstan, Turkey, Egypt, Thailand, Vietnam, Bangladesh, Georgia, Malaysia, Kenya, Nigeria and South Africa.
"The wealthiest 20% of the population in these countries (excluding India) already comprises a market of over 300 million consumers," says MTN. It notes wired Internet penetration, however, is still low (16% in Africa, 28% in Asia, 40% Middle East, and 43% in Latin America).
Karel Pienaar, group chief strategy and M&A officer at MTN, said: "This investment in Amadeus' new fund will give us exposure to a range of opportunities in online and mobile applications and services relevant to the needs of the emerging middle class of consumer."
Amadeus Capital Partners was founded in 1997 and has raised more than £550 million for investment and backed more than 85 companies in communications technology, cleantech, medtech, software, digital media and e-commerce.
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