Pan-African venture capital firm Janngo Capital announced the final closing of its second fund at $78 million, which is 20% beyond its initial target. This funding demonstrates the confidence of leading institutional and private financial investors in Janngo’s team and track record. And the firm’s investment thesis strikes the right balance between solid financial returns and tangible impact as evidenced by the successful exit of Expensya to unicorn Medius and by its 56% women-led portfolio companies like the soonicorn Sabi. The leading new investors including Mastercard Foundation Africa Growth Fund, DFC, IFC and ANAVA join first close investors.
Some of the investors that invested in this fund include:
– The European Investment Bank (EIB), which is the largest multilateral development bank, active in 160 countries.
– The African Development Bank (AfDB), which is Africa’s largest development finance institution with 81 member countries (54 regional and 27 non-regional).
– Mastercard Foundation Africa Growth Fund – MEDA, an innovative impact fund of funds initiative targeting Africa-based investment vehicles.
– The U.S. International Development Finance Corporation (DFC) is the U.S. government’s development finance institution. And DFC partners with the private sector to finance solutions to the most critical challenges facing developing countries.
– International Finance Corporation (IFC) – which is a member of the World Bank Group – is the largest global development institution focused exclusively on the private sector in developing countries.
– ANAVA (Smart Capital), which is a Tunisian fund of funds backed by the World Bank, CDC, and KFW; and additional private investors such as the leading African university endowment fund.
Janngo Capital’s Start-up Fund invests up to €5 million, from seed to growth, in technology startups that:
1.) Enable Africans to improve their access to essential goods and services such as healthcare, education or financial services,
2.) Enable African SMEs to improve their access to market and capital, or
3.) create sustainable jobs at scale, with a focus on women and youth.
Janngo Capital, its management company, is one of the very few female-founded, owned and led venture capital firms in Africa. And in 2020, the firm made a strong commitment to gender equality, pledging up to 50% of investments in companies founded, co-founded or benefiting women during the World Economic Forum in Davos. In 2023, Janngo Capital won the Gender Equality Award at the Africa CEO forum, in recognition of its 56% portfolio companies founded, co-founded or benefiting women and of its 91% portfolio companies complying with 2 times criteria.
In under 6 years, the firm has built a portfolio of 30+ investments across its 2 investment vehicles in 14 countries. And its portfolio companies have since expanded in over 20+ countries, spanning across key sectors such as healthcare, logistics, financial services, retail, food & agri, mobility and the creative industry and generating several billion dollars of transactions per year while creating over 20 000 jobs. The key investments include Sabi, which is a woman-led Nigerian soonicorn, recently named to the world ranking of Fast Company’s Most Innovative Companies. With substantial growth over the last three years, more than 250,000 registered users, 15,000 monthly orders and a revenue that has tripled in 2023 on an annualized basis compared to 2022, Sabi generates more than $1 billion of GMV per year.
The firm has also achieved the exit of Expensya, founded by Tunisian entrepreneurs Karim Jouini and Jihed Othmani, with an average Internal Rate of Return (IRR) of 48%. And the sale of Expensya to the Unicorn Medius, a global leader in “CFO as a Service” technology solutions and a key gateway for financial management, represents one of the largest transactions in the MENA region. In the past two years, Expensya has more than doubled its recurring revenue and expanded its team to over 200 employees across Tunisia, France and Germany. The company had raised $20 million in a Series B financing round in May 2021. Janngo Capital was the first African VC on Expensya’s cap table and has invested at seed and series B.
KEY QUOTES:
“We are proud to announce the final closing of our second investment vehicle at $78 million, 20% above our initial target pledged in Davos. We are particularly honored to have attracted a great mix of top-tier investors, African and global, institutional and private, impact and commercially driven to support our ambitious vision. Beyond our team, it is a strong signal of confidence in the African tech ecosystem and its solid growth prospects. We are committed to keep supporting category-defining startups leveraging technology to help leapfrog development in Africa, in a more equal way.”
– Fatoumata Bâ, Founder and Executive Chair of Janngo Capital.
“Empowering female entrepreneurs across Africa is crucial for unlocking the continent’s full potential. The European Investment Bank is pleased to support venture capital investment by the Janngo Capital Start-up Fund that is enabling women-led businesses to thrive, innovate, harness technology and create sustainable jobs. By providing access to finance and fostering entrepreneurial talent, we are not only contributing to gender equality but also driving economic growth and resilience across Africa.”
– Ambroise Fayolle, Vice President, European Investment Bank
“Creating secure, dignified, and fulfilling jobs is a priority for Africa’s economic growth. For Africa to achieve its development agenda, as well as the UN Sustainable Development Goals, innovative and proactive approaches to job creation for women and youth—are essential.”
– Samuel Akyianu, Managing Director of the Mastercard Foundation Africa Growth Fund
“DFC is delighted to partner with Janngo Capital Start-up Fund, a commitment intended to support the continued development of the venture capital ecosystem across Africa. Janngo’s approach of leveraging capital and technology nurtures entrepreneurship while fostering economic empowerment. Through DFC’s commitment, this partnership will result in improved access to financial resources, bolster economic stability, and increased job opportunities, especially for women and the youth.”
– Senior Vice President of Investments Mateo Goldman
“The project will help expand access to early-stage equity financing for tech entrepreneurs in the Francophone West Africa region, which is underserved by venture capital compared with other regions in Africa. We are delighted to support the fund’s investment strategy through this project, as it intends to allocate 80% of its invested capital in low-income and post-conflict countries and at least half in women-led companies. This investment is part of the IFC Startup Catalyst program, which supports incubators, accelerators, and seed funds investing in innovative early-stage startups in nascent venture ecosystems with capital, mentoring, and networking.”
– Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC
