E-Financial
Ventures Platform Secures First Close of US$40mn Pan-African Fund
Ventures Platform, the early-stage “discovery” venture capital fund championing the next generation of African entrepreneurs, has announced the first close of its new US$40m Pan-African, early-stage fund to invest in market-creating innovations.
With this close led by the Nigeria Sovereign Investment Authority (NSIA), the new fund features participation from existing investors and some new leading names across Africa’s corporate and tech ecosystems, including UAC Nigeria, VFD Group, Gbenga Oyebode, Shola Akinlade (Paystack), and global investors like; Michael Seibel (Y Combinator) and Adam Draper. A second close of the fund is due to take place in early 2022 and will feature investment from select global Institutional Investors and DFI’s.
Building upon its stellar reputation as one of the most active early-stage investors in African tech, Ventures Platform will significantly deepen its long-standing presence in Nigeria and West Africa while also investing in select opportunities in East, North & Francophone Africa – that have the potential to expand into West Africa’s key markets.
The fund’s latest capital injection also firmly positions it to double down on existing investments in its category-leading portfolio via subsequent rounds.
Since its launch in 2016, Ventures Platform has acted as a key partner and conduit for international funds and stakeholders seeking a reliable and experienced partner to do business in Africa.
With on the ground presence on the continent and its experience with corporate partnerships, talent, growth, regulation and operations – this new fund introduces the benefit of strong local LP participation and strengthens Ventures Platform’s ability to institutionalise its track record of collaborating with LPs and investors from North America, Europe and Asia, who need a reliable partner to work alongside when investing in the African technology space.
As part of a move to further deepen its expertise, Ventures Platform has also onboarded leading figures across African tech as Venture Partners, including; Seni Sulyman (ex-VP at Andela, ex-COO at Bellhop, Founder at Black Ops.)
Kola Aina, Founder and General Partner at Ventures Platform, says, “Over the last six years, we’ve backed close to 70 of Africa’s most compelling tech companies, building a robust portfolio which has featured one of the largest exits our sector witnessed to date through Paystack last year.
“As the incredible momentum in African tech continues to build, it’s attracting unprecedented attention globally amongst traditional and institutional investors, and we’re delighted to welcome aboard some world-class, strategic stakeholders to our fund.”
“As operators ourselves, we know what it takes to build a successful business on the continent, and we’ve spent years partnering with visionary founders effectively tackling some of Africa’s hardest problems – now is the time to go even further.
“We’re fully maximising our deep expertise navigating the nuances of the African market, and as we move ahead, we’re developing a global network of LPs in more established markets like Europe, the USA and Asia, many of whom partner with us due to our track record of backing winners, and they appreciate our on-the-ground experience and access to opportunities, which is vital for generating returns.”
With a ticket size up to $1m+ Ventures Platform is now positioned to fund follow-on rounds of successful startups building market-creating innovations across pre-seed, seed and Series A stages in sectors including Fintech, healthtech, enterprise SAAS, digital infrastructure and more.
Amassing a total of 28 investments to date in 2021 alone, the platform’s portfolio of 69 startups is one of the most elite in African tech with high-profile names including Seamless HR, Piggy Vest, Mono and Paystack – which Stripe acquired in October 2020 for $200m+.
Speaking about the fund, Mr. Uche Orji, MD & CEO, NSIA, said “Participation in this fund hits at the very core of the Authority’s objectives: stimulating growth by enabling new and innovative intramural technology to empower the continent.
To harness and unleash Nigeria and Africa’s potential, we are of the opinion that investment in ventures in the innovation and technology space is essential. In this regard, the Authority is proud to play a role in facilitating what it expects will lead to the rise of Africa”.
To date, Ventures Platform’s portfolio has raised over $500mn in follow-on rounds, and as the investor moves to consolidate its leading market position, this marks its first official institutional fund with previous capital resulting from syndicate and proprietary capital funds.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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