The private equity fund Maj Invest Financial Inclusion Fund III (MIFIF III) completed its fifth investment by acquiring shares in GTV Globokasnet LLC, parent company of Globokas Peru S.A (GKN). Founded in 2017, GKN is the largest multi-bank correspondent agent network in Peru with a network of +14,000 independent micro-small mom-and-pop corner stores, called agents, dispersed throughout the country, mainly in rural areas where financial institutions have little or no physical presence.
GKN connects more than 56 financial institutions and service providers with end-clients in underserved communities using technology through micro-small mom-and-pop corner stores. Equipped with a point-of-sale (POS), these micro-small stores can offer basic financial services to their communities on behalf of the partner financial institutions. Currently, more than 2.6 million low-income clients are able to cash-in and cash- out, pay their utility bills, buy airtime, among other basic transactions using GKN’s agent network.
The lack of infrastructure remains a major factor for financial inclusion, which is why financial institutions and service providers use agent networks to expand outreach at a lower cost. Moreover, the prevalence of micro-small mom-and-pop corner stores in underserved communities creates a big opportunity for GKN to grow in these areas while expanding access to financial services. In Peru, there are over 400,000 independent micro-small mom-and-pop corner stores, out of which only 15% of them are part of an agent network. Further, 60% of corner-stores are women owned.
MIFIF III is partnering with impact investor Nuveen Global Impact Strategy (Nuveen), which is the investment manager of TIAA (US). In combination the two shareholders will leverage their combined expertise as global investors to support the expansion of GKN, and the growth of the overall business through the introduction of new tailored products and services catering to providing better solutions to the unbanked low-income population.
In addition to providing capital for the company to grow, Maj invest will also contribute to the improvement of corporate governance of the company, formalizing ESG standards and practices, and be a strategic advisor on the board.
Also see article in the media:
Nuveen press release: Investment, in partnership with Maj Invest Financial Inclusion Fund III
For more information, please contact:
Kasper Svarrer, Managing Partner, Financial Inclusion, Maj Invest
Mobile: +45 33 38 73 60
Mail: ksv@majinvest.com