Verod-Kepple closes its first fund at $60 million to help support 21 growth-stage startups in Africa. Verod-Kepple Africa Ventures (VKAV), a venture capital firm focused on Africa, has completed the final close of its first fund, raising $60 million.
The firm intends to utilize this capital to support up to 21 growth-stage companies across the continent.
Verod-Kepple Closes Its First Fund
The latest funding round for Verod-Kepple Africa Ventures (VKAV) marks the final close of its first fund, totaling $60 million.
This achievement comes after initial closings in 2022 and 2023, with continued support from established investors such as SBI Holdings, Toyota Tsusho Corporation, Sumitomo Mitsui Trust Bank, Japan International Corporation Agency, and the Japan ICT Fund.
In addition to existing partners, new investors like Nigeria’s SCM Capital, Taiyo Holdings, and C2C Global Education Japan have contributed to the fund’s success. VKAV, a joint venture between Verod Capital Management and Kepple Africa, was established in 2022 by Ory Okolloh, Ryosuke Yamawaki, and Satoshi Shinada.
What VKAV’s Successful Fundraising Demonstrates
Despite the ongoing challenges in Africa’s investment landscape, VKAV’s successful fundraising demonstrates continued interest in supporting Series A and B companies across the continent.
As local funding for growth-stage startups remains limited, VKAV aims to bridge this gap and provide essential capital for scaling, exiting, or sustaining profitable businesses. Ory Okolloh, a partner at VKAV, emphasizes the importance of growth-stage funding to help startups advance to the next level and achieve long-term success.
“Our focus is Series A and B, but we can go earlier to pre-Series A if we think it is a good opportunity. We think there’s still a need for more growth-stage capital with locally based investors,” Okolloh further explained.
Verod-Kepple Africa Ventures Plans to Leverage Its Newly Closed Fund to Provide Hands-On Support
Verod-Kepple Africa Ventures (VKAV) plans to leverage its newly closed fund to provide hands-on support to portfolio companies during their scaling-up phase. This support will involve implementing operational best practices, enhancing governance structures, and navigating Africa’s intricate macroeconomic landscape through collaboration.
The focus of the VKAV fund will be on companies that are building infrastructure for the digital economy, addressing business inefficiencies, and developing products for the emerging consumer base in Africa.
The Fund Aims To Invest Between $1 Million and $3 Million in Selected Startups
With $17.5 million already deployed, the fund aims to invest between $1 million and $3 million in selected startups, with potential for follow-on investment. To date, VKAV has backed 12 startups across Nigeria, Egypt, Kenya, Morocco, Ivory Coast, and South Africa, with an average investment of $1.5 million each.
These portfolio companies operate in diverse sectors including mobility, finance, insurance, energy, and healthcare, with names like Moove Africa, KOKO Networks, Zone, Ceviant, Chari, Nawy, Shuttlers, NowPay, Cloudline, Julaya, mTek-Services, and Chefaa.
The Fund Aims To Expand Its Footprint into Additional African Markets
Looking ahead, the fund aims to expand its footprint into additional African markets such as Angola, Zambia, the Democratic Republic of the Congo, and Tunisia, aligning with its pan-African investment mission and seeking new opportunities for growth and impact.
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