Novastar Ventures has secured $108 million in a funding round tagged Novastar Ventures Africa Fund II (NVAF II). It raised the fund to support Eastern and Western African startups with social-impact solutions for low-income households. Novastar secured NVAF II from some leading European financial institutions, including CDC Group, AXA Impact Fund II, Proparco, FMO, Norfund, and SIFEM.
Novastar has two branch offices in Nairobi, Kenya and Lagos, Nigeria. It currently manages over $200 million funds and supports several startup initiatives that are targeted at low-income earners in both countries.
Novastar used its previously raised $80 million and a $12.5 million co-investment facility to back 15 companies with innovative and outstanding entrepreneurial potentials. These companies include mPharma, a technology-based pharmaceutical company; Metro Africa Xpress (max.ng), an on-demand motorcycle hailing and logistics startup; and Sure Chill, a cooling-tech company which supplies a wide range of off-grid products.
While conversing with Tech Crunch, the co-founder, Steve Beck explained the criteria for receiving the fund; “Essentially what we’re doing is looking for those businesses that are addressing the basic needs, basic goods, and services across the true mass markets of the continent”. He went further to explain that the companies will be eligible to receive $1 million or less, and either $8 or $9 million in subsequent capital rounds.
More on TechGist Africa:
- Cellulant Unveils Agrikore Risk Review, Focused at the Impact of COVID-19 On Africa’s Food Security
- Helium Health Secures $10 million Series A Expansion Round
- OLX Group Acquires 39% of Emerging Markets Property Group
- Ghana Launches Ghcovid19 Symptom Tracker to aid Contain the Spread of COVID-19
- 54gene Unveils Mobile Laboratory to Scale Nigeria’s COVID-19 Test Capacity