Invest International, jointly owned by the Dutch Ministry of Finance (51%) and the Dutch development finance institution, FMO (49%), announced on Tuesday, July 4, that it has committed €10 million ($10.8 million) to uMunthu II. This commitment is part of the first closing of the venture capital fund, which finances the international expansion of early-stage and growth-stage startups.
uMunthu II, which had received $57 million in commitments as of the end of May 2023, continues to raise funds with the aim of reaching a minimum of €150 million within two years. The funds obtained will allow this vehicle, co-managed by Goodwell Investments and Nigerian investment firm Alitheia Capital, to expand its portfolio of companies on the continent to approximately 30 to 35.
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For Invest International, joining the circle of uMunthu II investors will support Dutch companies in their search for growth markets in Africa. “Goodwell has a strong presence in Africa. This partnership expands our reach in emerging markets and directly connects the Dutch business community to growth opportunities in the agri-food sector and other sectors,” explained Eelco Benink from Invest International.
It should be noted that the uMunthu II fund was launched in November 2022. At that time, the fund announced commitments of around €50 million from private investors, family offices, and foundations. The first closing of uMunthu II was announced at the end of May 2023, with a total of €57 million raised.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
Goodwell Investments and Alitheia Capital have embarked on a groundbreaking collaboration, aiming to propel inclusive growth in Africa. Joining forces with a diverse group of investors, these pioneering impact investment firms are set to reshape the financial landscape of the continent, harnessing untapped potential in the face of global economic challenges.
The first close of the revolutionary uMunthu II fund has garnered remarkable support, with a passionate commitment of EUR 57 million ($60.8M). This initial success injects renewed vigor into the visions of Goodwell and Alitheia, as they strive towards their ambitious minimum target of EUR 150 million within the next two years.
The decision to channel investments into Africa stems from a shared conviction in the region’s unparalleled growth prospects. Boasting a youthful population and a rapidly expanding digital infrastructure, African markets provide fertile ground for innovative business models to flourish, enabling them to reach a burgeoning consumer base endowed with increased purchasing power.
Nevertheless, amid progress, a sobering reality persists: numerous households still lack access to affordable basic goods and services. However, within this paradox lies an opportunity, for this underserved demographic possesses significant buying power. The African market, therefore, holds immense potential, not only for economic growth but also for profound social change, even amidst global crises. Inclusive businesses providing essential products exhibit remarkable resilience, defying global trends, and catering to an ever-growing group of underserved users in need of basic necessities.
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Harnessing their collective expertise acquired over two decades in impact investing, Goodwell Investments and Alitheia Capital are uniquely positioned to bridge this gap. By empowering local entrepreneurs and nurturing homegrown solutions, these visionary firms seek to drive change at the grassroots level. Under the leadership of women-led investment teams, investments will be strategically managed within the regions where entrepreneurs are working tirelessly to effect transformation.
Enter uMunthu II, an emblem of hope for underserved low-income groups yearning for access to reasonably priced essentials. From food and housing to transportation and healthcare, inclusive businesses possess the power to reshape lives. The substantial funding of uMunthu II will embolden innovative entrepreneurs, enabling them to build transformative enterprises capable of reaching millions of underserved end-users. This groundbreaking initiative seamlessly merges positive social and environmental impact with financial success, defying conventional paradigms and paving the way for a new breed of entrepreneurs committed to driving societal change.
However, despite the immense growth opportunities, African entrepreneurs continue to face a glaring funding gap. While venture capitalists injected a record-breaking USD 6.5 billion into the 54 African countries, this starkly contrasts with the staggering USD 200 billion raised in the United States alone during the same period. The plight of African entrepreneurs, particularly women, calls for increased support and investment. uMunthu II stands resolute, actively seeking out and investing in early and growth-stage SMEs, with a specific emphasis on women-led businesses, who currently receive a meager fraction of venture capital funding.
The uMunthu II portfolio already paints a vivid picture of transformation, with nine visionary companies leading the charge. From Copia and Chicoa Fish Farm to Sendy, Good Nature Agro, Instill Education, and Origen Fresh, these trailblazers exemplify the fund’s unwavering commitment to high-impact sectors, setting the stage for a future where innovation and progress intersect harmoniously.
However, Goodwell’s aspirations transcend the confines of uMunthu II. Aiming to expand its network and attract like-minded family offices and institutional investors, the firm seeks to cultivate a vibrant community driven by shared objectives. For those with an astute eye for growth opportunities that seamlessly integrate financial returns with societal impact, Africa stands as the ultimate frontier, brimming with potential waiting to be harnessed.
Goodwell Investments and Alitheia Capital invite new family offices and institutional investors to join their network, providing an avenue for growth opportunities that align with both impact and financial objectives. The firms understand the immense potential for creating social and environmental impact on the African continent while delivering competitive financial returns.
As the journey to finance inclusive growth in Africa gains momentum, Goodwell Investments and Alitheia Capital are poised to reshape the narrative of impact investing. With a focus on closing the gap in access to basic goods and services, these visionary firms are committed to investing in local entrepreneurs and championing local solutions to address pressing societal issues.
The uMunthu II fund is not just a financial instrument; it represents a beacon of hope for underserved communities. By nurturing and empowering entrepreneurs, uMunthu II seeks to create a ripple effect that will lead to improved livelihoods, increased participation in social and economic networks, and a brighter future for all.
Africa, with its rich potential and resilient economies, stands as a testament to the power of inclusive businesses. Goodwell Investments and Alitheia Capital, united in their purpose, are ready to embark on this transformative journey, fostering a new era of inclusive growth in Africa.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
Goodwell Investments has launched its EUR150 million (US$154 million) uMunthu II fund, aimed at igniting the growth of inclusive businesses in the region.
Goodwell Investments IS A Social impact investment firm focused on inclusive growth in sectors providing basic goods and services and income generation opportunities to underserved communities in Africa and India.
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The firm provides early-stage equity to high growth, high impact businesses. With teams in Kenya, Nigeria, South Africa and the Netherlands and a track record of over fifteen years, Goodwell demonstrates the ability to simultaneously deliver significant social impact and strong financial returns.
Goodwell is raising EUR150 million (US$154 million) to finance innovative, scalable, small and medium-sized businesses that improve the access and affordability of basic goods and services for unserved and underserved consumers in Africa. The diversified investment portfolio will focus on financial inclusion (35%), food and agriculture (25%), and mobility and logistics (15%), with a secondary focus on healthcare, education and energy.
“Our mission-driven investment philosophy delivers both financial and social returns by taking an extremely local approach. Our repeated success is directly connected to working closely with our portfolio companies, bringing together both regional expertise and access to a global business network,” said Els Boerhof, one of Goodwell’s managing partners.
The fund will be co-managed by Alithea Capital, Goodwell’s long-term investment partner based in Lagos, Nigeria. To date, the fund has received EUR50 million (US$51 million) in commitments from private investors, family offices and foundations. The capital will be channeled into at least 35 new portfolio companies.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
