Startups in Kenya, Ghana and Tanzania Have Over $150 million New Fund
Kenyan startups have more investment opportunities in town. A Dubai-based equity fund, Nimai Capital has appointed Kenya’s Victoria Commercial Bank (VCB) to oversee the investment of its Sh1.5 billion in financial technology startups in Africa and Asia.
Here Is The Deal
- The new fund is named the Nimai Emerging Financial Services Fund (NESF) facility and it will seek to benefit 1.7 million customers in Kenya, Sri Lanka, Bangladesh, Nepal, India, Ghana, and Tanzania.
- However, only startups in the technology mobility-enabled emerging financial services opportunities including but not limited to banking, insurance, retail, and housing finance, microfinance will be able to access the funds.
- The Fund will be regulated by the Cayman Islands Monetary Authority.
“The markets were chosen based on the existing (fintech) presence and experience. It integrates investment expertise with deep operational capability and resources,” said a joint statement.
Victoria Commercial Bank’s chief executive Yogesh Pattni termed the deal as an opportunity to deepen their relationship with Nimai Capital which recently gave out Sh1 billion kitty for onward lending to women-led enterprises.
Nimai co-founder and managing director Pankaj Mundra said NESF will benefit from VCB’s business experience and deep understanding of the Kenyan market.
“We look forward to working with Victoria Commercial Bank to source and develop investment opportunities for the Fund across East Africa,” said Mr Mundra.
What Is Expected of Interested Startups
To be able to access this fund, interested startups or investee companies under the Nimai Emerging Financial Services Fund must be startups with proven track records.
Successful startups will gain access to diaspora financial services, expert financial advice from line companies as well as have systems integrated with Fintech firms in India thereby enabling them to facilitate cross-border financial services.
“We have a firm belief that the fund will make a significant and positive impact in the lives of millions of families in addition to generating appropriate financial returns for investors,” said the statement.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.