Verod-Kepple Africa Ventures (VKAV), a firm that invests in African businesses, has finished raising its first fund, gathering $60 million. They plan to support about 21 growing companies.
This recent investment comes after the fund’s first and second rounds of fundraising in 2022 and 2023. Several longtime partners, like SBI Holdings, Toyota Tsusho Corporation, Sumitomo Mitsui Trust Bank, Japan International Corporation Agency, and the Japan ICT Fund, have backed VKAV.
The venture also gained support from new investors, including Nigeria’s SCM Capital, Taiyo Holdings, and C2C Global Education Japan.
VKAV was founded in 2022 by Okolloh, Ryosuke Yamawaki, and Satoshi Shinada as a partnership between Verod Capital Management, a West African private equity firm, and Kepple Africa, a VC firm based in Tokyo.
Despite the current slowdown in investments across Africa, VKAV has managed to secure funding. This fund will enable them to provide crucial support to Series A and B companies in Africa, especially as local funding for growing startups becomes scarce.
Ory Okolloh, a partner at VKAV, highlighted the lack of investment at the growth stage for startups, which hinders their ability to scale, become profitable, or attract buyers. VKAV aims to fill this gap by focusing on Series A and B investments, while also considering opportunities at an earlier stage.
The firm plans to actively assist its portfolio companies by offering guidance in areas such as operations, governance, and navigating Africa’s economic landscape.
The VKAV fund will concentrate on businesses that are building digital infrastructure, improving business operations, and creating products for the growing consumer market in Africa.
Having already invested $17.5 million, VKAV aims to invest between $1 million and $3 million in selected startups, with the option for additional investment later on. They have already backed 12 startups across Nigeria, Egypt, Kenya, Morocco, Ivory Coast, and South Africa.
These companies operate in various sectors, including mobility, finance, insurance, energy, and healthcare.
Looking ahead, VKAV intends to explore investment opportunities in other African markets like Angola, Zambia, the Democratic Republic of the Congo, and Tunisia, aligning with its mission to support businesses across the continent.
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