An early-stage African investor at a recent investor meeting Yes, the capital It informed limited partners that it had returned its $4 million debut funding after selling some stake in the commercial banking platform. Moniepoint.
The African fintech unicorn has so far proven to be a standout investment for five-year-old Oui Capital. When it launched its first fund, It invested $150,000 in the Nigeria-based company, an early bet that returned $8 million, enough to repay the fund.
Moniepoint last October to be exact. Raised $110 million in funding valued at $1 billion. Oui Capital sold some of its stake in the deal in a Series C round led by Development Partners International. Now by repaying its funding. Any future will be free of profit for its investors.
It's a rare feat for a young VC firm, where most around the world fail to return their first funding, even in Africa's venture ecosystem. However, Some early-stage bets, particularly in fintech, underscore just how lucrative Africa is. Oui Capital joins other African investors. CRE VC versus 4DX Ventures After backing other unicorns, they returned their first funds. Andela versus FlutterwaveAccording to two people familiar with dealings with investors on the continent.
TechCrunch contacted Oui Capital for comment, and the company confirmed the news.
Moniepoint, formerly known as TeamApt, was not a household name in 2019 when Oui Capital was first considered. At that time, The company built financial products and software primarily for itself and for banks.
Oui Capital was founded. Olu Oyinsan versus Francesco Andreoliwas one of its earliest investors and one of the few to provide the suit's pivot to Moniepoint, a commercial banking and payments platform that later became Nigeria's largest merchant buyer.
“They have been with us every step of the way, from product marketing to production,” Moniepoint co-founder and CEO Tosin Enioluwadara told Oui Capital in 2021. Video. “Olu (Managing Partner at Oui Capital) was helpful in advising. strategy We discuss key issues affecting governance and the company. They also help with our investment activities, from introducing potential investors to sometimes just thinking about our narrative and positioning.”
Africa's tech scene still lacks outlets; Only 143 out of 2,971 venture agreements. According to The Big Deal, 2019 is headed for the exits. Most startups are still in their early or growth stages — far from the maturity needed for significant exits. Unlike developed markets with robust M&A and IPO options; Africa's tech ecosystem is still growing; A little bit of entrepreneurship is left on standby.
On the other hand, Venture investments typically take 5 to 10 years to mature, so many Africa-focused VC firms are still waiting for returns. For Oui Capital, That wait lasted five years. When the company entered Moniepoint's seed round, the company was valued at $12.5 million, according to an investor report seen by TechCrunch.
Strictly speaking, smaller funds have easier returns because of their size. District This trend is driven by Cambridge Associates, which builds and manages investment portfolios for institutional investors.
But more importantly, Oyinsan credits his fund-building portfolio to date for the company's traction. “It's not about the size of the fund, it's about what you invest in, the entry price, how much equity you own, how much you invest, when you decide to exit,” he told TechCrunch.
Other startups in Oui Capital's portfolio include Two thingsDigitizing payment flows for African B2B businesses; EarthB2B e-commerce platform for fast-moving consumer goods; versus Mataits first fund; B2B marketplace for chemicals by Mentors Fund 1.
With 22 startups with two capitals, the investor writes checks of up to $400,000 to seed-stage startups across Africa.
In 2022, Oui Capital launched a second fund, Mentors Fund 2. In an early-stage company; The initial target was $30 million.According to Oyinsan, it closed at $12 million. He said the fund has no plans to rush to raise funds because of its strong position, but could raise a third fund later this year.