GFTN sets up $200m fund to plug growth-stage fintech gap

The focus will be on firms that have shown commercial traction and scale.

Global Finance & Technology Network Limited (GFTN) plans to deploy a $200m capital fund to back fintech firms that have outgrown early-stage funding but are not yet ready for public markets, targeting what it sees as a persistent gap in growth financing.

The fund will focus on companies seeking capital to expand into new markets or broaden their product offerings, Neil Parekh, deputy chairman at GFTN, a nonprofit established by the Monetary Authority of Singapore in 2024, told Asian Banking & Finance.

“We see an opportunity especially at the growth capital stage, where there’s a dearth of capital,” he said in a Microsoft Teams call.

The fund is expected to deploy capital over three years after its first close, which Parekh said is targeted for the first half.

It will invest in growth-stage fintech companies globally, with a focus on firms that have shown commercial traction and operational scale.

Parekh said capital availability has become uneven across the fintech funding cycle. Early-stage startups continue to attract backing from family offices and high-net-worth people, whilst late-stage fintechs and companies preparing for initial public offerings still see strong investor interest.

Where GFTN sees the biggest challenge is in the middle, he said. These companies have already raised multiple rounds, but they struggle to find capital to support their next phase of growth, he added.

Many of the firms approaching GFTN have been operating for six to eight years and are looking to enter more markets or expand into adjacent business lines, such as payment firms moving into small- and medium-enterprise financing.

Parekh said a growing number have expressed interest in the fund without any formal marketing effort.

“They’ve evidenced the value they add to the fintech ecosystem,” he said.

The fund was launched in partnership with Japan’s SBI Holdings and SBI Ven Capital Pte. Ltd. GFTN spoke with more than 20 potential partners before selecting SBI, citing its experience managing close to $60b in financial service investments.

“They want to work with a partner like us that can help companies enter new jurisdictions and markets,” Parekh said.
Interest from potential portfolio companies increased after the fund was announced at the Singapore Fintech Festival, he added. As of December 2025, GFTN was processing documentation to complete the fund’s formal setup.

The launch comes as fintech investment in Southeast Asia remains under pressure. Funding for the sector fell 21% year on year in 2025, according to Traxcn Technologies Ltd., underscoring the challenges faced by companies seeking expansion capital amid tighter market conditions.

Parekh said the long-term goal is to establish more funds, but that depends on performance.

“If you take money from outside investors, whether they’re institutions or family offices or insurance companies, you have a fiduciary responsibility to generate returns,” he said. “No one will be willing to give us money unless we generate returns on fund No. 1.”

He added that the fund would remain flexible as market conditions shift. “We have to stay nimble… and adapt as we go along.”