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. Development Partners International in fintech deal
Ukheshe International, the UK-headquartered division of digital-first, banking as a service (BAAS) enabler Ukheshe Group, announced the conclusion of an investment agreement that will help accelerate its international expansion. The investment will be led by ADP III, a fund advised by Development Partners International (DPI), alongside funds advised by Fireball Capital, a South African venture capital firm.
Founded by four founders in 2018, Ukheshe was established to drive financial inclusion across Africa and beyond, by creating new ways for businesses to develop and grow their financial services offerings. Since its founding, Ukheshe has scaled rapidly, and today serves over 100 customers across different sectors, including banks, fintechs, mobile network operators, and other small and medium-sized businesses. Ukheshe also continues to expand its international footprint with operations in Mauritius, Kenya, and the UAE.
2. Climate Fund Managers announces second close of CI2 at $855m
Climate Fund Managers (CFM) announced the second close of its blended finance facility Climate Investor Two (CI2) at $855 million.
CI2 is CFM’s second climate-focused, blended finance initiative following the establishment of its first initiative: Climate Investor One (CI1). With a $1 billion target fund size, CI2 will provide expertise, technology, and financing to infrastructure projects in emerging markets by mobilising private sector financing at scale, supported by catalytic public sector donor funding. Building on CI1’s focus and expertise in renewable energy, CI2 will add a focus on water, sanitation, and oceans infrastructure. These sectors are fundamental to human life and economic development but are also the medium through which the effects of climate change will be felt on earth.
3. Aruwa Capital announces final close of first fund
Aruwa Capital Management, a Lagos-based early-stage growth equity and gender lens investment firm, announced the successful close of its first institutional fund, which was oversubscribed, surpassing its target of $20 million. The fund’s first institutional and anchor investor is Visa Foundation, followed by other investors such as Mastercard Foundation Africa Growth Fund, Nyala Venture and family businesses from Africa, Europe and the United States.
Aruwa Capital Management was founded in 2019 by Adesuwa Okunbo Rhodes who has leveraged more than a decade of investment banking and private equity experience from leading global organisations such as J.P. Morgan. Adesuwa started Aruwa to address the investment gap that women led enterprises face in Africa. They comprise 40% of all small and medium enterprises, yet receive only 1% of start-up capital due to the lack of female capital allocators in the region. Through its investment strategy, the fund aims to create more sustainable and scalable pathways for economic growth and inclusion in the region. The fund will invest $500,000 to $2.5 million in women focused small and growing businesses in Nigeria and Ghana, targeting investments in critical sectors such as healthcare, fintech, renewable energy, and essential consumer goods.
4. FMO proposes investment in Inspired Evolution fund
The Dutch entrepreneurial development bank FMO has disclosed a proposed $40 million investment in the Evolution III Fund (EVIII), a pan-African private equity fund focused on investments in renewable and sustainable energy infrastructure, energy access, and energy and resource efficiency solutions that forge climate-resilient development pathways for Africa’s future.
EVIII has a target fund size of $400 million and is advised by Inspired Evolution Investment Management. Established in 2007, Inspired Evolution is a South Africa based climate impact fund investment advisor that has proven regional development and investment experience in the clean energy, energy and resource efficiency space.
5. Allan Gray E-Squared Ventures and UW Ventures lead investment in Synatic
Synatic, a South African data integration and automation company, has secured an additional $2.5 million in a seed extension funding round. Synatic will use the additional funds to expand its market reach in the United States in preparation for series A funding in 2023.
Participating in the seed extension round are Allan Gray E-Squared Ventures (AGEV), UW Ventures, Adansonia PE Opportunities VCC, and the Endeavor Harvest Fund. AGEV and UW Ventures are investment management and venture firms based in South Africa.