From grants to growth: Following the journey of IAP almuni

The journey from promising innovation to investment-ready enterprise rarely follows a straight path, especially in emerging markets. Businesses often find themselves trapped in the “missing middle”—too substantial for microfinance yet too small to attract commercial investment. This is where initiatives like the Innovations Against Poverty Challenge Fund (IAP) step in, providing a mix of grant funding and comprehensive support that helps businesses evolve from grant people we work with into investment-ready enterprises.

Recently, we contacted former grantees to gain insight into their post-programme journeys. The response was enlightening—17 businesses across four countries shared their experiences, revealing both impressive achievements and ongoing challenges.

Despite operating in challenging investment landscapes, 65% of survey respondents have secured additional funding since completing the IAP programme, and nearly 20% have pursued investment opportunities.

In total, the 17 enterprises (out of 39 businesses supported to date) have raised an impressive €3.58 million in post IAP support—averaging €325,000 per business. The investments vary from modest amounts of €8,000 to an eye-catching €1 million, reflecting the varied capital needs of inclusive businesses at different stages of growth. Each business tells a unique story.

Each business tells its own story. ChapChap, a Ugandan fintech company, secured equity investment from the Nordic Impact Fund in 2021—a connection made directly through IAP. The company credits SNV’s support as instrumental, particularly in skills development, investor linkages, and enhanced market credibility. “We didn't have contacts with whom we could share our journey,” said the founder during an IAP webinar. “IAP made introductions and helped us prepare for engaging in investor discussions.” Another former grantee in Uganda echoed this sentiment, noting that IAP’s involvement had enhanced their visibility, strengthened their asset base, and positioned them as a credible partner for future investment.

In Ethiopia, TruLuv Trading used a €73,000 IAP grant—complemented by €82,000 of its own investment—to dramatically scale production of its “Gursha” snack bars from 30kg to 750kg daily. Since then, it has secured €627,000 in follow-on financing. But the story isn’t only about money. IAP support helped TruLuv refine its product formula, optimise operations, strengthen governance, and rebrand from “TruLuv Granola” to the more culturally resonant “Gursha”, enabling a deeper connection with local consumers.

Husk Ventures, while not part of the survey group, exemplifies the kind of long-term trajectory that IAP aims to enable. Starting as a grantee in 2017–2018, the Cambodia-based organic fertiliser company recently secured €4.4 million in equity investment. A representative at our launch event highlighted that “the IAP grant was helpful, but the non-financial support from IAP was just as important to build our internal capacity.”

The impact goes beyond finances. Collectively, the 17 surveyed alumni reported reaching nearly 6 million people living in poverty in 2024 alone—an average of 353,000 people per grantee. One business noted how demand had outpaced capacity: “We increased product demand tremendously. Consumers are looking for the product from day to day; unfortunately, we are not able to deliver and satisfy the demand of all customers. Our product is increasingly getting requested by neighbouring countries.”

Financial growth, while uneven, showed signs of resilience. Over half of respondents reported moderate (5–20%) to significant (over 20%) revenue increases since completing the programme. Only one reported a revenue decline. But profitability remains elusive for many—29% of respondents said they are not yet profitable—underscoring that the path to sustainability is long and rarely linear.

Still, the path forward is not without its challenges. Former grantees continue to face serious barriers—chief among them, access to appropriate investors. Some operate in sectors seen as too risky, such as aquaculture and fintech. Others are constrained by local financial institutions that demand collateral businesses simply don’t have. As one leader put it, “Securing capital to maintain and grow operations is one of the biggest challenges. There is no financial access from the bank in the country.” For female entrepreneurs, these difficulties are compounded by limited networking opportunities and gender-based barriers within the investment ecosystem—barriers that cannot be ignored if inclusive business models are to thrive.

In response to these realities, IAP has launched a new initiative for alumni, selecting eight innovative enterprises to receive further support with investment readiness and intermediary engagement. This follow-up effort recognises that financial capital alone is not enough. What’s needed is a broader ecosystem—one that supports inclusive businesses through knowledge, networks, and continued accompaniment beyond the initial grant period. Because in the end, sustainable impact doesn’t just come from the cheque—it comes from the system surrounding the cheque.