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At a recent business conference, an African entrepreneur Yes Capital he informed a few of his friends that he would return his first fund of $4 million following the sale of some shares in private banks. Moniepoint.
The African fintech unicorn has so far proven to be a popular investment for five-year-old Oui Capital. When it launched its first fund, it invested $150,000 in a Nigerian company, an initial bet that returned $8 million — enough to repay the fund.
Especially, last October, when Moniepoint they raised $110 million at a cost of $1 billion in the Series C round led by Development Partners International, Oui Capital sold some of its shares in the partnership; now, with his fund returned, each future return will be a pure profit for his depositors.
It is very difficult for a young VC firm – many around the world fail to return their first fund – and very rare in the African ecosystem. However, it underlines how early bets, especially in fintech, can benefit the continent. Oui Capital joins other African investors such as CRE VC’s photo and 4DX Ventures who have returned their first investment after supporting other unicorns, such as Andela and Flutterwaveaccording to two people familiar with the continent’s trade.
TechCrunch contacted Oui Capital for comment, and the company confirmed the story.
Moniepoint, formerly known as TeamApt, was not a household name in 2019 when Oui Capital first considered it. At the time, the company only developed financial products and software as well as banking.
Oui Capital, founded by Olu Oyinsan and Francesco Andreolihe was among the early investors and one of the few who helped transform the outfit into Moniepoint, a business and payment hub that has become Nigeria’s largest source of commerce.
“They have been with us in stages, from the search for good products to production,” Tosin Enioluwadara, Moniepoint’s co-founder and CEO, said of Oui Capital in 2021. movie. “Olu (partner managing director at Oui Capital) has been very helpful in terms of advice; we talk through strategy, leadership, and key issues that affect the company. It has also been helpful in our financial campaigns, from identifying potential borrowers to sometimes just thinking about what we’ve said and how we’ve invested. .. “
Exiting the current situation in Africa remains rare, and only 143 out of 2,971 traders from 2019 leading to an exit, according to The Big Deal. Many startups are still in their early or growth stages – far from the maturity needed for a major exit. Unlike developed markets with strong M&A and IPO options, African technology is still growing, leaving few startups ready to exit.
On the other hand, venture capital firms often take 5 to 10 years to mature, so many African VC firms are still waiting for returns. For Oui Capital, the wait took five years. When the company joined Moniepoint’s seed division, the company raised $12.5 million in value, as revealed in an investor report seen by TechCrunch.
By default, small investments are easier to repay because of their size. More information from Cambridge Associates, which builds and manages investment portfolios for institutional investors, is promoting this.
But most importantly, Oyinsan appreciates the construction of his fund to work so far. “It’s not just about the size of the fund — it’s about what you invest in, your entry price, how much money you have, how much you invest, and when you decide to exit,” he tells TechCrunch.
Other startups in Oui Capital’s portfolio include Doublewhich focuses on payment solutions for African B2B businesses; The worldB2B e-commerce platform for fast-moving consumer goods; and Matthewthe B2B pharmaceutical market, from its first fund, Mentors Fund 1.
The trader, who owns 22 startups in two currencies, writes checks of up to $400,000 for seed startups in Africa.
In 2022, Oui Capital launched a second fund, Mentors Fund 2. they originally wanted $30 millionit closed at $12 million, according to Oyinsan. He added that while the fund has no plans to rush to raise funds because of its strength, it may raise a third fund later this year.
