Impact and InvestmentResults 2023
Delivering essential services and low-carbon growth for emerging consumers
LeapFrog companies reach 537 million people, 359 million of whom are emerging consumers, living on less than $11.20 a day*.
Data in this report is accurate as of 31 December 2023. *Emerging consumers are defined as those earning less than $10 a day (2011 PPP$) for those investments made before February 2022. Due to inflation, companies invested in since February 2022 define emerging consumers as those earning less than $11.20 a day (2017 PPP$). Full glossary of definitions available here.
A message from Founder and CEO
Dr Andy Kuper
LeapFrog companies have surpassed an astonishing milestone – the result of 17 years of tireless work and dedication from our team and portfolio companies.
We founded LeapFrog in 2007 with the commercial ambition to reach 25 million emerging consumers with essential services. We were told, many times, this was delusional. As at end of 2023, LeapFrog companies reached 537 million people with healthcare, financial tools or climate solutions - 359 million of those people are emerging consumers. This is 14X our original ambition. It is also a landmark achievement in commercial impact investing, changing and sometimes even saving many lives.
What enabled LeapFrog to outperform initial expectations so dramatically? We believe it is a team that combines global technological foresight with local industry knowledge, and long-term thinking with a core strategy of Profit with Purpose that drives daily focus.
Disciplined Growth
Disciplined Growth
In 2023, unexpected shocks, currency volatility, and high inflation, continued to roil global markets. LeapFrog took this opportunity to bolster profitability and resilience across its portfolio, while continuing to deliver outstanding growth. In our flagship Fund III, 15 of 17 businesses improved their key valuation metric, and the overall percentage of our investment portfolio that is EBITDA positive jumped from 66% to 91%.
Partner Stewart Langdon on how technology is enabling scale in our financial services portfolio.
Leading with Impact Authenticity
Leading with Impact Authenticity
LeapFrog continues to exemplify best practice for impact measurement and management and is recognised as one of twelve leading managers globally to achieve the highest rating of “Advanced” across all eight Impact Principles as verified by BlueMark.
Learn moreP1
Impact objectives
P2
Portfolio-level impact management
P3
Investor contribution
P4
Impact due diligence
P5
ESG risk management
P6
Impact monitoring
P7
Impact at exit
P8
Impact Review
Source: BlueMark verification, 2023. For more detail see full verification
Healthcare
Healthcare
Partner Biju Mohandas on how omnichannel healthcare has enabled our portfolio to scale.
Company Spotlight: Redcliffe Labs
LeapFrog conducted industry-leading research with Redcliffe Labs, a Fund IV investment, finding that the company’s diagnostic tests are more cost effective at tackling illnesses, like diabetes and heart disease, than many standard treatments. The data highlights the importance of digitally-enabled and low-cost diagnostics businesses in combatting India’s rising pandemic of non-communicable diseases.
The study found Redcliffe’s tests were more cost effective than the national treatment coverage for protecting against the consequences of cardiovascular disease, while its test for diabetes were less than 2/3 the cost of the cheapest comparable screening and telemedicine interventions*.
Read the full research hereSource: Deepening impact with DALYs, 2023. *The analysis used the common Disability Adjusted Life Years (DALY) metric to compare cost efficiency.
Financial Services
Partner Fernanda Lima on the power of embedded insurance to provide springboards and safety nets for low income consumers.
Spotlight on Digital Insurance
Over the past four years, as LeapFrog has expanded its portfolio, the digitalisation of insurance has increased and the total number of customers reached by our insurance companies has grown by 2.2x to more than 49 million. We have experienced significant growth of digital non-life products such as e-commerce and rideshare policies as well as asset insurance to cover devices or machinery. These product innovations are helping emerging consumers to secure their prosperity by protecting against economic shocks.
Learn more about our Financial Services portfolioCompany data, 2024
Financial Services
Climate Investing
LeapFrog’s plan to commit $500m to companies to address climate change in Africa and emerging Asia was announced at the US-UK Climate Mobilisation Forum in July 2023 - where HM King Charles III and US President Joe Biden were joined by Andy Kuper and 20 other global CEOs. The strategy has already been backed by global investors such as Temasek and EIB.
Deep Dive - The Green Leap in Global Growth Markets. Temasek Vice Chair Sustainability, Steve Howard and McKinsey & Co Partner Hauke Engel join LeapFrog Partner Nakul Zaveri and Head of Impact Julie Wallace for a panel discussion on the economics of the green transition.
Company Spotlight: Sun King
Sun King, the world’s largest off-grid solar provider, is a Fund IV investment enabling access to renewable energy for hundreds of millions of consumers. The company is an example of how green technologies can offer low-income consumers cheaper products and services than incumbent carbon-intensive alternatives, a phenomenon we describe as the “green discount”.
Source: Investor Roadmap for Inclusive Green Growth, 2023
Climate Investing
Jobs and Livelihoods
Jobs and Livelihoods
LeapFrog companies directly employed more than 241,000 people, either full time or in part time or agent roles. They paid $566 million in salaries that flowed through to local economies. The contribution of our companies to job creation goes far beyond these numbers. In the markets that we invest in, emerging enterprises often called micro, small and medium enterprises (MSMEs), account for as much as 70% of employment. Providing credit or insurance to these enterprises can catalyse enormous impact.
In 2022, we made a pledge at the Clinton Global Initiative to help our companies to finance or protect 25 million emerging enterprises that support 100 million jobs by 2030. In the past year, we have made progress towards that goal, reaching 20 million MSMEs who support 28 million jobs.
Partner Karima Ola on the power of agency networks to create jobs and broaden access to financial services.
Company Spotlight: Electronica Finance
Electronica Finance is an Indian secured MSME lender enabling small enterprise owners to grow their businesses by providing them with access to financing for purchase of livelihood-generating machinery and solar panels, closing the $530B MSME credit gap and aiding in the green transition for Indian industry. The company employs 1,878 staff directly, and through its loans to MSMEs supports a wider 64,400 jobs.
Learn more about the company hereWomen and Girls
Women and Girls
Women and girls play an important role in improving economic and health outcomes for families and communities . Ongoing discrimination, persistent gender disparities in workplaces and limited access to financial sectors, impact women’s opportunities to realise this potential. Despite efforts to address these gaps, resources remain insufficient. Research indicates that gender balance enhances performance and engagement in the private sector, correlating with improved business metrics.
Women are also disproportionately vulnerable to risks and lack adequate tools for risk management. LeapFrog companies are actively developing tailored products to empower women, offering accessible and well-designed solutions to address their specific needs and challenges.
Climate Action Plan
Climate Action Plan
LeapFrog’s climate practices are evolving to meet the greatest challenge of our time: climate change. Over the past year we have taken several new steps to deliver on our climate commitments.
Portfolio Case Studies
Our diverse companies are uniquely serving the needs of the growing emerging consumer class. Learn more about our work to create value and impact in these examples from our portfolio.
Redcliffe Labs
Redcliffe Labs
Improving the quality and convenience of diagnostics
MedGenome
MedGenome
Global leader in genetic testing, research and drug discovery solutions
Interswitch
Interswitch
Accelerating financial inclusion for sub-Saharan Africa
Electronica Finance
Electronica Finance
Providing Indian MSMEs with the credit to thrive
CarDekho
CarDekho
Emerging Asia's springboard for mobility
HealthifyMe
HealthifyMe
India & Southeast Asia's largest digital wellness platform
bolttech
bolttech
Accelerating access to affordable, quality insurance
HDBank
HDBank
Vietnam's engine for MSME credit growth
Impact Methodology
Impact Methodology
The end consumers have always been at the core of our impact reporting. To quantify the level of impact of an investment, we calculate reach based on the benefit to a household. A multiplier of the household size is used to calculate the total people reached and emerging consumers reached. Our household multiples are between 1-5. The multiple used is based upon the sector, type of product or service and location. For example, one customer may buy an insurance policy that protects them and their spouse; we count that as one customer but two people reached and impacted - and we report both metrics.
We align with the following reporting and disclosures:
LeapFrog’s Global Team
LeapFrog’s Global Team
51%
Women in LeapFrog workforce
51%
Of LeapFrog team are racially diverse
At LeapFrog, we pride ourselves on our commitment to diversity, equity and inclusion. This is reflected in the composition of our teams and our work to build the diversity and inclusion capabilities of the companies that we invest in.
Meet the team