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A major investment theme for next year: fibre networks. According to Kilpeläinen, fibre networks are currently the best way to bridge the digital divide—and to invest with impact.
“In emerging markets, we see the fastest economic growth, the fastest population growth, and also the fastest growth in data. The need to build new networks is enormous.”
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Finnfund’s Kuutti Kilpeläinen and his team already have clear goals for 2026. Kilpeläinen works as Senior Investment Manager, Head of Digital Infrastructure and Solutions portfolio at Finnfund.
“Our main task in 2026 is to promote digital inclusion and narrow the digital gap between emerging and developed markets through investment. We create connections for people, businesses, and governments,” Kilpeläinen says.
Artificial intelligence and data centres are also major trends in emerging markets. For example, hundreds of megawatts of data centres are built annually in Malaysia and Thailand.
Africa, by contrast, has only 300 MW of data centres—a very small amount.
“Data needs to be close to the user to be fast. In the medium term, Africa will need gigawatts of data centres. As AI adoption grows, the need will multiply.”
Finnfund manages 1.3 billion euros in investments. The portfolio Kilpeläinen oversees—investments in companies that advance digitalisation—accounts for 200 million euros of that.
Finnfund’s strategy is based on impact investing, which means seeking not only financial returns but also positive effects on people’s lives or the environment. Impact investing combines profitability with social impact, aiming for a better society.
It is part of the ESG theme (environmental, social, governance), where investors consider environmental and social risks, as well as good governance practices.
“Impact investing more clearly considers the benefits and risks of investing and aims to ensure that capital has a positive effect. You could say impact investing dives straight into the deep end of ESG,” Kilpeläinen says.
Speed is impact
Impact thinking began to emerge in ESG investing around 2019 and has been a significant theme since 2020. Before that, impact investing existed mainly among a few philanthropists.
How does Kilpeläinen summarise the impact of Finnfund’s digital investments?
“We invest in companies that build connections or technology solutions. These enable faster, more affordable, and more widely available connectivity and services. This increases both economic and digital inclusion. The number of potential users grows, and not only those at the top of the pyramid benefit from digitalisation—the whole society does,” he says.
Impact also stems from the fact that people have more money left over for other needs when digital services are less expensive. Of course, impact depends on each company’s business model.
Finnfund invests approximately 200–250 million euros annually, with a goal of allocating 40% of that amount to digital businesses. The digital investment strategy was launched in 2021.
“It has become Finnfund’s most strategically significant sector. The investment team has grown from two to eight people. We’ve put a lot of resources into this and want to make it a major area.”
Finnfund’s starting point is that capital must create impact. “It’s equally important that capital earns compensation for risk,” Kilpeläinen says.
“Equity investments should achieve a 20% return, and debt investments slightly below 10%.”
Finnfund invests across the entire digital value chain: telecom companies, critical digital infrastructure, data centres, fibre networks, towers and their energy solutions, mobile operators, and digital technology firms.
Examples of impactful investments
In 2025, Finnfund invested in Mexican company Netwey, which provides fibre networks in areas with poor fixed-line connectivity.
“People have been using digital services via mobile data or even copper wires,” Kilpeläinen says. Netwey builds fibre networks for entire regions and then offers fixed connections for a monthly fee.
“People and businesses can join without connection fees and get devices directly from the company. They pay weekly or monthly in advance—no long-term commitments.” The impact comes from giving people fast, unlimited internet instead of costly mobile data.
Private capital involvement
Finnfund also invests in technology companies. A major theme is fintech—innovative digital financial services.
In many emerging markets, payments have traditionally been cash-based, which is insecure and costly.
Mobile payments are experiencing significant growth, particularly in Africa. There, Finnfund has invested in Wave Mobile Money, one of Africa’s largest mobile payment companies.
It offers local services that are 70% cheaper than before. More than half of Senegal’s and Côte d’Ivoire’s populations use the service daily.
“For them, it’s what a credit card is for us.” Kilpeläinen’s digital portfolio now includes 15 companies. Finnfund is a growth-stage investor—it does not invest in startups or act as a venture capitalist.
“We join companies that have already scaled somewhat. Our goal is to enable further growth,” Kilpeläinen says.
Finnfund is a minority investor, investing 5–20 million euros per company, typically in businesses with financing needs of 40–150 million euros and revenues in the tens of millions.
Each year, Finnfund invests in about five to seven digital companies. How does Kilpeläinen’s team find targets? They screen hundreds of companies and thoroughly analyse potential investments.
“A big part of the work is finding and evaluating targets. With some, we move forward.”
Partners help identify opportunities. “As a minority investor, we always invest alongside other funds, development financiers, or multilateral development banks. Local private equity and development funds are a major channel for us—they understand local market dynamics.”
Finnfund invests together with local partners. The team also visits companies and attends industry events, seminars, and conferences. Sometimes companies approach Finnfund directly.
“We usually follow a company for a year or two. When we invest, we already know it well.”
Finnfund is increasingly focusing on attracting private capital. It makes equity investments in digital companies through its new fund, the Finnfund Digital Access Impact Fund I, which operates similarly to a traditional private equity fund and is the first fund that Finnfund manages itself.
The fund currently stands at 80 million euros, with a target of 150 million euros.
The minimum investment is 1 million euros, and the investor base will likely include around ten institutions, such as pension funds, family offices, or other fund investors.
Finnfund also invests from its own balance sheet, financed by government funding, and issues bonds.
