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Tag: Novastar Ventures

  • AVCA’S Fifth VC Summit Spotlights Resilience, Scale, and Bankability as Critical Levers to Propel Africa’s VC Ecosystem

    AVCA’S Fifth VC Summit Spotlights Resilience, Scale, and Bankability as Critical Levers to Propel Africa’s VC Ecosystem

    The African Private Capital Association (AVCA) hosted its fifth Venture Capital (VC) Summit yesterday. The summit forms part of the industry association’s 21st Annual AVCA Conference week, held in Lagos until 2 May. The global gathering brings early-stage and venture capital investors, corporate venture arms, founders, entrepreneurs, and accelerators together to discuss new trends and plot the rise of Africa’s venture capital landscape.

    Abi Mustapha-Maduakor, CEO of AVCA, opened the Summit by acknowledging the strategic importance of Nigeria’s entrepreneurial landscape: “Hosting the Summit in Nigeria is significant because this country has long been at the heart of Africa’s entrepreneurial evolution. Despite economic headwinds, we’ve witnessed innovation and resilience in the early-stage ecosystem. It is no coincidence that in 2024, Nigeria produced one of the continent’s newest unicorns.”

    Tope Awotona, Founder and CEO of Calendly, the US$3bn tech unicorn, and Abi Mustapha-Maduakor, CEO of AVCA, kicked off the summit with a keynote fireside chat. Describing his remarkable entrepreneurial journey, Awotona said: “I knew scheduling wasn’t just a productivity tax—it was a tax on important business outcomes like revenue. We didn’t invent online scheduling but made it accessible to more people through three key innovations: our freemium pricing model, our viral distribution method, and our data-driven product improvements.”

    The conversation affirmed the power of innovation, enabling expansion to international markets and the benefits of experimentation with price, distribution, and product. Awotona said: “When scheduling went virtual, more users meant more data could help to improve the product and help to become the best on the market.” 

    Following the sentiments of Calendly’s Founder and CEO, a panel titled Unlocking Scale: The Growth-Stage Challenge with Leo Batalov, Partner, Global Co-Head of Emerging Growth Companies and Venture Capital, DLA Piper, and Brian Waswani Odhiambo, Partner, Novastar Ventures, examined how to bridge the gap for businesses moving from early stage development to accessing capital in their growth stage, and highlighted the urgency of building strong local investor ecosystems.

    Outlining the roles of founders and venture capital investors in supporting the long-term sustainability of Africa’s burgeoning tech ecosystem, Dr Omobola Johnson, Senior Partner, TLcom Capital, said: “We need to help founders understand that at the growth stage, they’re competing for global capital, not just local. Founders must recognise the competition and make their businesses appealing to international investors…This makes the African market more scalable, bankable, and investable.”

    The summit proceeded with a headline session, entitled Titans of Industry: Bold Moves, featuring Tosin Eniolorunda, Group CEO of Moniepoint, who underscored the merits of building a valuable company and building a robust team. He said, “If you have an organisation that is growing, investors will be interested; so we focused early on establishing good fundamentals—topline growth, profitability, EBITDA margins, return on equity. The more important goal is building a valuable company with healthy bottom lines. This opens up multiple opportunities, whether through Nigeria’s evolving stock exchange or large buyouts from sovereign wealth funds.”

    Other panels convened capital allocators – representing corporate, commercial, and development-focused interests – to share their perspectives on a maturing venture capital ecosystem in Africa. The competitive fundraising environment provided a backdrop to outline how Limited Partners (LPs) select where to invest, assess risk, evaluate opportunity, and determine priorities.

    In a panel entitled Venture Debt – Africa’s Missing Piece? speakers including Rosanne Whalley, Chief Executive Officer, AHL Ventures Partners, Roeland Donckers, Managing Partner, iungo capital, and moderator Tage Kene-Okafor, Africa reporter at TechCrunch, discussed the role of venture debt products as a complement to equity funding, providing bridge capital to accelerate company growth. 

    According to AVCA’s latest report, venture debt showed impressive resilience in 2024, with 60 deals totalling US$1.0bn—a 3% increase year-on-year. While representing just 12% of total deal volume, venture debt accounted for 37% of total capital deployed, with median deal sizes reaching US$7.5mn, nearly three times larger than equity-based transactions.

    The session underscored the need for African investors to know when to deploy these tools and the importance of raising awareness amongst founders of these financing alternatives. Biola Alabi, Venture Partner, Delta40, noted that “there is a critical gap in financial literacy around debt financing in our ecosystem. Many founders and even some GPs don’t fully understand what debt investors require in terms of traction and stability. We need to help restructure existing debt and educate founders on how venture debt can complement equity to extend runway and avoid dilution, particularly for businesses with predictable revenue streams.”

  • Visa makes Strategic Investment in Moniepoint to Accelerate Financial Inclusion for African SMEs

    Visa makes Strategic Investment in Moniepoint to Accelerate Financial Inclusion for African SMEs

    Moniepoint Inc.,) one of Nigeria’s leading business payments and banking services platforms, has secured an investment from Visa, a global leader in digital payments. The investment marks an important milestone in Visa’s commitment to advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa.

    Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint (formerly known as TeamApt) has established itself as a leading financial platform for Nigeria’s vast network of small and medium-sized businesses (SMEs), offering an integrated suite of services, including digital payments, bank accounts, credit, foreign exchange (FX), and management tools. The platform processes over 1 billion transactions monthly, with total payments volume exceeding $22 billion, enabling businesses to digitize their operations and thrive in Africa’s rapidly evolving economy.

    With this investment, Visa supports Moniepoint’s mission to empower African businesses, further accelerating its growth and expansion across the continent. Moniepoint’s profitable and scalable business model, alongside its strong operational and financial track record, has positioned it as a transformative force in the African fintech ecosystem.

    As Africa’s Fintech landscape continues to evolve rapidly, driven by a dynamic ecosystem and a focus on bridging the financial inclusion gap, Visa has been at the forefront of this transformation, putting its expertise and resources to work in support of the growth of African Fintech startups. 

    Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc., said, “We are thrilled to announce Visa’s investment in Moniepoint. Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale. Together, we aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy. Given that about 83% of employment across Africa is in the informal economy, we are very keen to widen access and participation in the formal financial system and drive economic growth across Africa.”

    He continued, “Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem. We are delighted in joining forces with Visa to enhance the digital payment infrastructure, expanding financial services, and fostering innovation in Africa.”

    Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa, added:

    “Moniepoint has built an impressive platform that directly addresses the needs of Africa’s SMEs, a critical segment in enabling economic development. By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation.”

    “Visa’s investment in Moniepoint is the latest example of our long-standing commitment to advancing digital economies in Africa. We will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities, while streamlining their operations.” 

    Moniepoint has experienced exponential growth since its founding in 2015, with revenues increasing by over 150% CAGR in recent years. The company’s efforts to expand access to financial services align closely with Visa’s mission of enabling individuals and businesses to thrive in the global economy.

    Congratulating both parties, the Nigerian Investment Promotion Commission (NIPC) celebrates this strategic investment in Moniepoint, highlighting it as proof of Nigeria’s attractiveness for investors due to its favorable business climate. Furthermore, the NIPC praised Moniepoint as an exemplar of Nigerian excellence contributing significant value to the global financial ecosystem.  The Commission emphasized its commitment to supporting investors and fostering economic cooperation in finance and technology to help Nigeria reach its full economic potential.

    This partnership combines Moniepoint’s local expertise and innovative business model with Visa’s global resources and capabilities. Together, Moniepoint and Visa aim to accelerate the digital transformation of African SMEs, driving financial inclusion and long-term economic prosperity.

    Visa joins other notable investors including Development Partners International, Google’s Africa Investment Fund, Verod Capital, Lightrock, QED Investors, Novastar Ventures, British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Global Ventures and Endeavor Catalyst in advancing Moniepoint’s mission to create a society where everyone experiences financial happiness.

  • BasiGo Secures $42 Million in Funding to Scale Public Transport Electrification in Sub-Saharan Africa

    BasiGo Secures $42 Million in Funding to Scale Public Transport Electrification in Sub-Saharan Africa

    BasiGo, the leading provider of electric bus solutions in sub-Saharan Africa, has today announced the successful closing of a US$42 million in new capital. 

    The funding round consists of US$24 million in Series A equity funding along with US$17.5 million in debt facilities from British International Investment (BII) and the U.S. Development Finance Corporation (DFC). The equity funding round is led by Africa50, the pan-African infrastructure investor and asset manager, marking the most significant investment from an African fund in an e-mobility company.

    The equity round features co-investments from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation. The Series A equity round unlocks a $10 million debt facility from DFC for BasiGo Kenya, as well as a new $7.5 million in debt facility from BII specifically designed for scaling BasiGo’s E-bus deployment in Rwanda.

    Jit Bhattacharya, CEO of BasiGo remarked: “Since we founded BasiGo in 2021, our mission has been to create the future of clean, electric public transport in Africa. We are thrilled to have Africa50, a premier African infrastructure investment fund, recognize the potential of our mission. The combined equity and debt investment into BasiGo validates our vision and positions BasiGo to focus on scale and profitability. With BII’s support to expand our E-bus model in Rwanda, we are ready to deliver hundreds of modern, emissions-free electric buses across East Africa.”

    The capital raised by BasiGo will be put towards the company’s core objective of delivering 1,000 electric buses in East Africa within the next 3 years. In Kenya, the funds will specifically be used to increase manufacturing capacity at BasiGo’s dedicated E-Bus assembly line located at Kenya Vehicle Manufacturers.  The investment will also support the expansion of BasiGo’s Pay-As-You-Drive offering to new vehicle types, and to improve BasiGo’s technology platforms such as Jani which make electric buses more accessible and convenient for passengers.

    “We are delighted to conclude Africa50’s first investment in the e-mobility space to support the greening of the public transport sector in Kenya and Rwanda. We believe BasiGo is well positioned to scale in East Africa and beyond given its world class engineering and operations teams, strong value proposition to transport operators and the caliber of strategic and financial partners assembled by the founders,” said Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50. “As the largest investment to date by an African fund in an e-mobility company, we are proud to support innovation that drives green growth and development in the region,” added Mr. Hasnani. 

    Steve Beck, Managing Partner at Novastar Ventures commented: “As an early investor in BasiGo, we are immensely proud of the team’s continued progress towards transforming the public bus transport sector in Africa – delivering improved experience for commuters and substantial environmental benefits. This latest funding round is a testament to the strong investor confidence in BasiGo’s business model, value proposition and customer demand as it expands its operations and leads the way in sustainable transportation in Africa. We are thrilled with this latest milestone and look forward to our continued partnership with BasiGo through the next phase of growth and beyond.”

    In December 2023, BasiGo expanded its operations to Rwanda where it is currently operating 6 pilot electric buses on routes inside Kigali as well as inter-city routes serving nearby towns. The newest debt facility from BII will be put towards launching commercial deliveries of E-Buses in Rwanda, where BasiGo has already received over 300 reservations from bus operators.

    Seema Dhanani, Head of Office, Kenya and Coverage Director, East Africa at BII, said: “We are delighted to support BasiGo as it expands into Rwanda. This marks a significant step in electrifying the local public transport sector, reducing pollution, and combating climate change impacts. This is in line with our priority of supporting e-mobility to foster sustainable economic growth.” 

    The total capital raised represents one of the most significant investments into Electric Mobility in Africa. The investment accelerates BasiGo’s growth trajectory and strengthens its position as a leader in Sub-Saharan Africa’s evolving EV landscape.

  • AVCA announces Lagos to Host the Largest Africa-focussed Investment Event

    AVCA announces Lagos to Host the Largest Africa-focussed Investment Event

    …AVCA’s 4th Venture Capital Summit in Nigeria will look at how emerging sectors such as deep tech will drive the next era of VC growth in Africa

    AVCA — The African Private Capital Association announced Lagos as the host city for the AVCA Annual Conference and Venture Capital Summit in 2025. After 10 years, Africa’s largest private capital gathering will return to the region’s largest economy, Nigeria. This follows the successful AVCA Conference and VC summit held in Johannesburg last week, which attracted 700+ delegates from more than 60 countries. 

    More than 300 delegates attended the 3rd Annual VC Summit where panellists took stock of the global decline of VC funding and explored a range of solutions to catalyse growth. Speakers marked the influence of rapidly emerging technologies shaping African innovation and driving the digital economy, creating new skills and increasing efficiency, such as artificial intelligence, blockchain and quantum computing.

    Speaking on the panel, ‘The DeepTech Potential in African Tech’, Andre Jr. Ayotte, Partner, Modus Capital, highlighted how founders can apply technology to build companies solving problems at scale. Despite progress in tech-enabled sectors, Nick Allen, Managing Partner, Savant, noted that gaps in Africa’s tertiary education system have led to a lack of skilled graduates with sufficient engineering knowledge. He added that in comparison to more developed markets such as Europe and the US, there is a lack of investors who understand how to finance deep tech in Africa. 

    Speaking during the panel, ‘Seasons Change: Lessons Learned in Winter and the Path to Spring’, panellists took stock of the global decline of funding within the VC ecosystem. Seasoned investor, Khaled Ben Jilani, Senior Partner, AfricInvest, raised the importance of active strategies to make businesses less capital intensive in order to anticipate new risks and navigate a lack of liquidity in the market. Steve Beck, Co-Founder and Managing Partner, Novastar Ventures, expressed that private equity firms and development finance institutions (DFIs) with dedicated VC teams had stepped in to partially fill the funding gaps, particularly in the early stages. 

    Other panel highlights included ‘Catwalks, Canvases, & Choruses: Sector Spotlight on the Creative Industry’, ‘Debt Dynamics: Unlocking Liquidity with Venture Debt in Africa’,‘Green Ventures: VC for Climate’, ‘Founders First: Building a Platform for Success in African’ and ‘The Real Deal” – Venture Capital in the Real Economy’.

    The VC summit saw participation from Africa-focussed venture capital funds, DFIs and global investors including AfricInvest, African Renaissance Partners, Aves Lair, Altree Capital, Breega, Enza Capital, European Investment Bank (EIB), Flat6Labs, LoftyInc Capital, Lightship Anchor Fund, Octerra Capital,  Proparco, Savant, Sango Capital, Sawari Ventures, Standard Bank, TL Com Capital, USAID Prosper Africa, Ventures Platform, 500 Global, and more. 

    Looking ahead, Nigeria’s position at the forefront of venture capital and private equity investment in Africa, backed up by a tech-savvy population and the recent rise in local investment funds and angel investors, sets the scene for a dynamic summit in 2025.  

    Abi Mustapha-Maduakor, Chief Executive Officer, AVCA, said: “Nigeria has emerged over the last decade as an investment hotspot in Africa. The country’s entrepreneurial spirit and well-established pools of local capital gave rise to some of Africa’s earliest unicorns, particularly in the payments sector. As we wrap up the conference in Johannesburg, we look forward to our next event in a city that has played an equally catalytic role in Africa’s investment landscape”.

  • AVCA set to host Second Venture Capital Summit & Anounces New Board Members

    AVCA set to host Second Venture Capital Summit & Anounces New Board Members

    Following the African Private Equity and Venture Capital Association’s (AVCA) successful 18th Annual Conference, held from Tuesday 26th – Wednesday 27th April, the association introduced its second Venture Capital (VC) in Africa summit on Thursday 28th April. The conference convened over 500 leaders in the private equity (PE) and venture capital industry to discuss emerging trends and strategies to maintain sustainable growth of VC investment in Africa.

    ‘Tokunboh Ishmael, co-Founder and Managing Director, Alitheia Capital, opened the summit with a welcome address where she described the surge of international interest in Africa’s thriving VC sector as a decisive opportunity to learn from Africa’s evolving private equity ecosystem over the years.  She said, “There is still much to learn from African PE. We have the investors and skill to solve some of the continent’s most pressing problems.”

    Advocating for knowledge exchange and deeper collaboration in a growing industry, she continued by saying: “Let’s use the insight and expertise that has catalysed success across geographies to unlock the scale and growth of more bright ideas and ambitious companies leaping us further into the future. I can’t wait to see the next 20 years of Africa’s PE and VC landscape.”

    The summit proceeded with a panel charting the development of Africa’s early-stage investment landscape over the years, unpacking how it has become a recognised and distinguished investment class.

    Speakers including Tarek Assaad, Managing Partner, Algebra Ventures; Maurizio Caio, Founder and Managing Partner, TLcom Capital; Michael Oluwagbemi, Co-Fund Manager, LoftyInc Capital Management; and Shruti Chandrasekhar, Regional Head, Africa, International Finance Corporation, exchanged perspectives on the continent’s expanding technology ecosystems; trading views on how to bridge the “valley of death” that ensnares so many high-potential African start-ups and addressed the increasing participation of private equity firms in the venture capital space.

    Maurizio Caio, Founder and Managing Partner, TLcom Capital, commented: “It’s important that we focus on how to make sure that the ecosystem’s growth is healthy. Let’s turn the excitement from capital deployment into an impetus that makes sure global capital investors see VC in Africa as the destination to go to. More PE investors should allocate capital to VC.”

    A conversation exploring the concept of unicorns harked back to 2021, a year that saw a record four African start-ups reach billion+ dollar valuations. VC champions Tidjane Deme, General Partner, Partech; Hany Al-Sonbaty, Managing Partner, Sawari Ventures; Khaled Ben Jilani, Senior Partner, AfricInvest and Brian Waswani Odhiambo, West Africa Director, Novastar Ventures examined the business models attracting high-level investor interest as well as the prospects for the industry seeing similar stories of success in the future.

    The summit continued with a series of plenary sessions centred on how early-stage VC investors are faring in Africa’s growing late-stage market; diversity, equality and inclusion; and workshops focussed on data, governance, and effective solutions to navigate complex country-specific and regional financial, legal, and regulatory frameworks.

    The summit progressed with an entrepreneur showcase and sessions addressing the implications for the diversification of capital streams. Thabiso Foto, Chief Financial Officer, Founders Factory Africa; Ory Okolloh, Partner, Verod Kepple Africa Ventures; Nthabiseng Thema, Director, Sango Capital, and Folake Elias-Adebowale, Partner, Udo Udoma & Belo-Osagie discussed strategies to overcome the bottlenecks – posing viable routes for corporate ventures, investment holding companies, fund of funds and private equity firms to crowd into the early-stage investing space.

    In a panel bringing together global perspectives speakers addressed the market drivers for Africa’s continued attractiveness to international investors, the rising diversification of actors in Africa’s VC ecosystem, and the spread of corporate venture capital supporting new and dynamic entrepreneurial ventures in Africa.

    Highlighting the vast opportunities within a flourishing and nascent VC ecosystem in Africa, Ben Marrel, Managing Partner, Breega, said: “It is undeniable – Africa has strong demographics. Like all markets, they are never perfect – but it’s important to identify how massive problems can be transferred into massive opportunities, and this is how pioneering companies are formed.”

    As AVCA marks the onward journey ahead for a private capital industry at an inflexion point, the association announces new Board Chairs and Committee Members. Accordingly, the Board of Directors of the African Private Equity and Venture Capital Association (AVCA) has appointed Paul Botha as Chair; Genevieve Sangudi as Vice-Chair; Mark Kenderdine-Davies and Jennifer Mbaluto as Chair, and Co-Chair of the Legal & Regulatory Committee (LRC), effective immediately.

    Abi Mustapha-Maduakor, Chief Executive Officer, AVCA, added: “I am delighted to have Paul and Genevieve as AVCA’s Chair and Vice-Chair. Their support as existing Board members, and their extensive knowledge and experience in the industry, will be invaluable as we lead AVCA towards delivering on our ambitious goals for 2022 and beyond. I would also like to thank the outgoing Chair, ‘Tokunboh Ishmael, and Vice-Chair, Ziad Oueslati, for their unwavering commitment, support and leadership of AVCA over the past four years. AVCA is unquestionably stronger for their contributions.

    She added: “Additionally, I am delighted to welcome Mark and Jennifer as AVCA’s LRC Co-Chairs. Their collective experience and deep expertise will be instrumental in defining the committee’s deliverables over the coming months. Our appreciation to the outgoing LRC Committee Chair, Geoffrey Burgess, for his outstanding commitment and valuable guidance over the past five years.”