Injaro secures a $17.5 million fund to help back Ivorian and Ghanaian SMEs. Ghanaian multi-sector fund investor, Injaro Investments Advisors Limited has recently announced the close of its Ghana Cedi-denominated private equity fund, Injaro Ghana Venture Capital Fund (IGVCF), at GHS 216 million ($17.5 million).
Injaro Secures $17.5 Million Fund
Investors that are in the equity fund are inclusive of institutional investors such as Venture Capital Trust Fund and Minerals Income Investment Fund Ghana and local pension funds, which is inclusive of Stanbic Investment Management Services, PETRA Securities, Databank Group, and CALA Asset Management Company Ltd. The firm which is headquartered in Ghana, states that it will make use of the equity find to directly invest in top of the shelf small and medium size businesses (SMEs) in both Ghana and the Ivory Coast.
The Impact Growth Ventures Capital Fund (IGVCF) is designed to empower profitable Small and Medium Enterprises (SMEs) operating in Ghana’s high-growth sectors. These sectors include mining support services, food and agriculture, education, healthcare, financial services, industrial services, and light manufacturing.
What is Injaro
Injaro, established in 2009 by Jerry Parkes and Dadie Tayoraud, has a mission to provide vital capital to Ghanaian SMEs, enabling them to expand their operations and contribute to economic growth across the continent. With 14 years of experience, the investment firm currently manages $65 million across multiple funds, including Injaro Agricultural Capital Holdings and Agri-Business Capital Fund.
IGVCF aims to create job opportunities for thousands in Africa, complementing the 3 million people who have already benefited from the fund. In addition to stimulating Ghana’s economy and supporting businesses, Injaro prioritizes safeguarding the financial well-being of pensioners who have invested in its funds.
The Investment Strategy of IGVCF
The investment strategy of IGVCF involves deploying a combination of debt, equity, and quasi-equity instruments to ensure both financial returns and substantial growth for its investees. To qualify for funding, companies must have been in operation for at least three years, generated a minimum revenue of GHS 20 million, and maintained a net income (EBITDA) of at least GHS 3.5 million ($281,055).
Depending on the business model of the investee, IGVCF may take a majority or minority stake in the company. Future exits will be determined by factors such as cash flow, sponsor buy-outs, strategic mergers and acquisitions, or initial public offerings.
IGVCF’s Promise to the Continent of Africa
Having already invested $2 million in Zeepay’s Series A round, IGVCF is committed to promoting environmental, social, and governance practices among its portfolio companies, thereby fostering sustainable economic growth across Africa.
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