The 5 most popular stories on Africa Private Equity News this week
Here are summaries of the five most widely read stories this week on Africa Private Equity News.
1. South Africa: Ethos leads acquisition of Crossfin
Crossfin, a leading player in the South African fintech industry, is being acquired by a consortium of investors. The transaction is considered a landmark deal in the fintech industry and will see Crossfin secure the required capital to pursue the next phase of its growth. The transaction is one of the largest private equity-led investments in the fintech sector in South Africa to date and offers the consortium exposure to an industry that has and is expected to continue benefitting, among others, from the secular trends of digitalisation and proliferation of payments technologies.
The transaction will see the exit of the founding investors Capital Eye Investments and the Multiply Group, who have been anchor shareholders since 2017.
The consortium is led by Ethos’ Mid-Market Fund I (EMMF I) and includes the founding Crossfin executive management team, EMMF I co-investors, Ethos Artificial Intelligence Fund I, and African Rainbow Capital. Independent investment banking firm Fairview Partners acted as financial advisor on the transaction.
2. IFC considering a $25m commitment to Quona fund
The IFC is considering an equity commitment of up to $25 million in Quona Accion Inclusion Fund III, a venture capital fund that seeks to make equity or equity-equivalent investments in early- and growth-stage companies that develop and/or provide products, services and technology to expand financial inclusion in emerging markets.
The fund is managed by Quona Capital Management Ltd., an exempted company incorporated in the Cayman Islands. The investment manager is 100% owned by Quona partners, who are primarily based in Washington, D.C., India and South Africa.
The fund will primarily make investments in Latin America, Southeast Asia, South Asia and Africa.
3. Aruwa Capital invests in Nigerian hibiscus exporter
Aruwa Capital Management, an early-stage growth equity and gender lens fund investing in Nigeria and Ghana, has announced an investment into AgroEknor International, a fast-growing hibiscus flower exporter and wellness brand.
AgroEknor, founded in 2013, is primarily engaged in the processing and exportation of dried hibiscus flowers, a superfood and wellness product. All flowers are sourced locally in Nigeria, processed in house, and exported all year round to international clients in the food and beverage industry, where it is typically used as a flavouring in healthy teas and other drinks as well as the pharmaceutical industry, where it is used in immunity-boosting and high blood pressure medicines.
4. African Capital Alliance in ICT infrastructure deal
African Capital Alliance, a pan-African alternative investment firm focused on managing investments across Africa, announced an equity investment, via its CAPE IV fund, into WIOCC (West Indian Ocean Cable Company), Africa’s hyperscale infrastructure provider. ACA’s investment forms part of WIOCC’s $200 million capital raise. The investment will support WIOCC in its expansion strategy across Africa and accelerate its investment in enhancing the continent’s digital infrastructure.
Established in 2007, WIOCC operates a communications platform that delivers critical services to its wholesale clients across 30 countries in Africa and many more globally. The platform comprises more than 75,000km of terrestrial fibre interconnecting well over 100 points of presence (PoPs), and seamlessly integrated with its strategic investments in multiple subsea systems. One of the leading players in Africa’s wholesale connectivity market, WIOCC is responsible for more than 50% of capacity activated on the Eastern Africa Submarine Cable System (EASSy), a key undersea fibre-optic cable system connecting countries and consumers in Eastern and Southern Africa to the rest of the world.
5. Axian commits to Actis energy fund
The Axian Group has announced its subscription to Actis Energy 5, a new energy fund being managed by Actis.
By investing in Actis Energy 5, Axian is prioritising projects that will bolster the world’s transition to renewable energy. Axian is already a leading solar-energy producer in Madagascar.
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