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. Kasada acquires a portfolio of African hotels from AccorInvest
Funds advised by Kasada Capital Management announced the first transaction made through the debut fund, Kasada Hospitality Fund LP, acquiring a portfolio of sub-Saharan African hotels from AccorInvest.
The landmark deal is one of the largest cross-border hospitality M&A transactions in Africa and will see Kasada take control of eight fully operational hotels across three countries – Ivory Coast, Senegal and Cameroon – comprising 1,602 hotel rooms focussed on servicing intra-regional business travel in Africa.
2. Knife Capital launches second 12J VC fund
Having deployed most of its first R250 million (about $16.5 million) Section 12J venture capital fund: KNF Ventures, Knife Capital launched another 12J fund for new investors to participate in this growing and exciting alternative asset class.
KNF Ventures II is the second Section 12J venture capital company (VCC) launched by Knife Capital. It has the same investment mandate as Fund I and will continue to build on the success and momentum created. By leveraging knowledge, networks and funding, KNF accelerates the growth of South African innovation-driven SMEs to generate enhanced returns for entrepreneurial-minded investors.
The Section 12J VCC regime was established to facilitate equity investment into higher-risk SMEs, thereby fuelling innovation, job creation and economic growth. Qualifying investors can compensate for risk and enhance their return on investment by claiming amounts incurred on acquiring VCC shares as a deduction from taxable income.
3. TLcom Capital leads $6m fundraise for agri insurance platform
Pula, an African insuretech service provider startup that specialises in digital and agricultural insurance to derisk millions of smallholder farmers across Africa, has closed a $6 million series A fundraise. The series A fund was led by TLcom Capital, with the participation of Women’s World Banking. The new investment will be used to scale up operations in the company’s existing 13 markets across Africa.
Launched in 2015 by Rose Goslinga and Thomas Njeru, Pula designs and delivers innovative agricultural insurance and digital products to help smallholder farmers endure climate risks, improve their farming practices and bolster their incomes over time. For smallholder farmers in emerging markets, the traditional method of calculating insurance through farm visits is often unaffordable for farmers, meaning these farmers are often neglected from financial protection against climate risks.
4. Quona Capital backs Nigerian wealth management platform
Nigerian fintech company Cowrywise has closed a $3 million pre-series A funding round, led by Quona Capital. This is Quona’s first investment in Nigeria. Others that participated in the round include Sahil Lavingia, Tsadik Foundation and a syndicate of Nigerian angels.
Cowrywise is a wealth management platform that enables users to plan and manage finances, save money and invest in mutual funds.
5. Mediterrania Capital Partners exits investment
Mediterrania Capital Partners, a private equity firm focused on growth investments for SMEs and mid-cap companies in North Africa and sub-Saharan countries, has announced the sale of its remaining stake in Cash Plus – the largest independent money transfer company in Morocco – to a group of Moroccan family offices.
Founded in 2004, Cash Plus is Morocco’s leading independent money transfer and low-income financial services provider, offering access to a comprehensive portfolio of inclusive financial products including currency exchange services, online payments of purchases and taxes and other banking services for low-income customers.
In July 2014, Mediterrania Capital Partners entered Cash Plus’s equity by acquiring a 49% stake. The investment was aimed at supporting the company’s aggressive expansion plans and launching new products and services, significantly widening its portfolio and customer reach.
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