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. EXEO Capital acquires health foods group Vital
Pan-African alternative investment firm EXEO Capital has announced its acquisition of The Vital Health Food Group through Nurture Brands, the functional and convenience foods platform in EXEO Capital’s Agri-Vie Fund II.
The transaction was led by Riël Malan, EXEO partner and executive chairman of Nurture Brands.
Vital is South Africa’s oldest manufacturer and distributor of vitamins, minerals and supplements, with its iconic flagship brand bearing the same name.
2. IFU exits West African solar company to Shell
A consortium of shareholders, led by Danish development finance institution IFU, have sold 100% of their shares in the West African solar company Daystar Power to Shell.
IFU’s investment in Daystar Power was made on behalf of the Danish SDG Investment Fund, which is a public-private partnership backed by large Danish pension funds and private investors. The purpose of the fund is to support the Sustainable Development Goals by making commercial investments in emerging markets.
3. Tugende closes pre-series B funding, raising a total $10m in equity and debt
Tugende, the fintech platform for MSME credit and asset-financing in East Africa, closed a pre-series B equity funding round from existing shareholders led by Partech and two new investors, including Women’s World Banking.
Along with a recent debt closing, the combined $10 million investment further strengthens Tugende’s balance sheet, allowing it to increase portfolio growth and address a significant credit demand amongst MSMEs, particularly after the strict lockdowns of 2020 and 2021.
4. Actis acquires controlling stake in Yellow Door Energy
Yellow Door Energy (YDE) has announced the closing of a $400 million equity raise to continue its development of sustainable energy projects in the Middle East, Africa and beyond. The investment also includes a purchase of current shares, enabling the company’s initial investors to exit. The funding is substantially provided by YDE’s newest and now controlling shareholder, Actis, with existing shareholders International Finance Corporation, Mitsui and APICORP also increasing their equity commitments.
With the closure of this transaction, YDE’s business plan is fully funded and the management team is now focused on executing sustainable energy solutions over the next five years, with a portfolio value expected to exceed $1 billion, which will be funded through a combination of equity and debt securities.
5. Nigeria: Lifestores Healthcare raises $3m
Lifestores Healthcare, a Nigerian health technology company, has closed a $3 million pre-series A funding round. The round was led by Health54, the healthcare-focused corporate venture capital arm of CFAO Group, with Aruwa Capital Management, an early-stage growth equity fund based in Nigeria, as a supporting lead, along with participation from other existing investors. The round was oversubscribed by 50%.
Lifestores will use the capital to fuel expansion in Nigeria, improve its software capabilities, and reach new customer segments. To achieve this, the company will expand its sales and engineering teams, as well as its senior management. Lifestores operates an online B2B pharmaceutical marketplace, OGApharmacy, which provides pharmacies with 10-20% group discounts, cutting-edge supply chain software, and the confidence that medications are authentic and not dangerous counterfeits. Experiencing a 25% monthly marketplace growth to date, OGApharmacy counts more than 10% of Nigeria’s pharmacies as registered customers.