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. SA SME Fund announces first close for its Venture Capital Fund of Funds
The SA SME Fund announced the first close of its R1 billion (c. $52.6 million) Venture Capital Fund of Funds (VC FoF), with R600 million (c. $31.6 million) in commitments from investors.
The fund exceeded its first close target of R500 million (c. $26.3 million), attracting first mover institutional and pension fund capital to the VC asset class. The VC FoF includes a first loss capital layer from the SA SME Fund and USAID, as well as capital commitments from the Department of Science and Innovation, and the Consolidated Retirement Fund for Local Government, represented by Sukha and Associates.
The SA SME Fund was established by members of the CEO Initiative and is a collaboration between government and business aimed at addressing some of the most pressing challenges to the country’s economic growth. It is chaired by Adrian Gore and its investment committee is chaired by Michael Jordaan.
2. M-KOPA raises $250m in equity and debt funding
M-KOPA, a fintech platform, has closed over $250 million in new debt and equity funding to expand its financial services offering to underbanked consumers across sub-Saharan Africa. This marks one of the largest combined debt and equity raises in the African tech sector, enabling M-KOPA to continue its rapid growth.
Over $200 million in sustainability-linked debt financing was led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO, British International Investment, Mirova SunFunder and Nithio. A further $55 million in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5 million to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude, the sister fund to Local Globe, also participated in the transaction.
3. South Africa: Vuna Partners acquires majority stake in The Bed Shop
Vuna Partners Fund I, managed by Vuna Partners, has acquired a 60% equity stake in Dynamic Bedding, trading as The Bed Shop, the largest independent bed retailer in Southern Africa. The acquisition from the current majority shareholder, Vantage Capital, sees the remaining 40% equity stake being acquired by The Bed Shop’s existing senior management.
Founded in 1994, Dynamic Bedding manufactures an extensive proprietary line of affordable, quality bed bases, mattresses and bedding accessories, exclusively distributed by its regional network of more than 100 corporate, franchise and online stores throughout South Africa, Namibia and Zambia. The company has a manufacturing facility in Krugersdorp, South Africa, and is supported by an in-house logistics and distribution team.
4. Amethis appoints new partner
Amethis, a part of the Edmond de Rothschild Private Equity Partnership, has announced the elevation of Romain Gauvrit to partner status.
Gauvrit launched his career at Qualium, later transitioning to Bpifrance where he held the position of investment director from 2014. He was responsible for overseeing several portfolio investments, successfully executing 17 equity investments that included Labelys, Laborizon, Platinium, Rougnon, and Carizona, each of which demonstrated strong performance.
5. South Africa: RMB Ventures backs Mafika Engineering
RMB Ventures has acquired a 45% stake in Mafika Engineering, Africa’s largest independent rebuilder of high horsepower (HHP) diesel engines used in the mining industry. RMB Ventures has made this investment in concert with Mafika’s existing management team.
Mafika restores HHP and ultra-HHP engines used in high-value mining machinery, such as ultra-class haul trucks, dozers, and excavators.