AFRICA – Verod-Kepple Africa Ventures (VKAV), a pan-African venture capital firm, has closed its first fund at US$60 million.

This significant milestone allows VKAV to invest in up to 21 high-potential growth-stage companies across the continent.

Existing Japanese investors like SBI Holdings and Toyota Tsusho Corporation were joined by newcomers including Nigerian firm SCM Capital (formerly Sterling Capital Markets Limited) and additional Japanese institutions like Taiyo Holdings and C2C Global Education Japan.

This comes at a time when access to capital is a major hurdle for African startups, particularly those in Series A and B stages.

VKAV aims to bridge this gap by providing crucial funding to these companies.

Partner Ory Okolloh highlights the importance of supporting startups at this critical growth stage, enabling them to achieve long-term success.

Founded in 2022 through a joint venture between Verod Capital and Kepple Africa, VKAV focuses on startups tackling key areas: building digital infrastructure, streamlining business processes, and capitalizing on emerging consumer trends.

The firm has already invested US$17.5 million across 12 companies in various sectors – fintech, mobility, e-commerce, proptech, deeptech, insurtech, energy, and healthcare – spanning countries like Nigeria, Egypt, Kenya, Morocco, Ivory Coast, and South Africa.

Their investment range falls between US$1 million and US$3 million. Notable portfolio companies include Moove Africa, KOKO Networks, Shuttlers, Cloudline, Chari, and mTek-Services.

While remaining open to opportunities across sectors, VKAV shows particular interest in three areas: Vertical Enterprise Resource Planning (ERP) startups, businesses offering embedded financial services, and players in the future of work landscape.

The collaboration between Verod Capital and Kepple Africa empowers VKAV to provide hands-on support to their portfolio companies.

This includes guidance on navigating Africa’s complex economic environment, best practices for operations, and strategies for improved governance.

Verod-Kepple also said the fund would invest in three key themes: African companies building digital infrastructure across sectors; inefficiency solvers who are solving for friction primarily between B2B or B2C basis; and market creators who are creating economic opportunities for people, based on the changing dynamics of the overall African economy and demographics.

According to Okolloh, Verod-Kepple Africa seeks to back startups beyond established African tech hubs, thereby exploring innovations in emerging markets like Angola, Zambia, DRC, and Tunisia. 

“Given the diversity of markets, shifting macros, markets that are underserved in terms of investors, we think taking a pan-African and a sector-agnostic approach is important,” he said.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE