During a recent meeting with investors, early-stage African investment firm Oui Capital announced to its limited partners that it has successfully returned its inaugural $4 million fund, thanks to the divestment of shares in the business banking platform Moniepoint.
So far, Moniepoint has been an exceptional investment for Oui Capital, which was founded five years ago. The firm initially invested $150,000 in the Nigeria-based fintech when it established its first fund, and this early investment has now yielded an $8 million return, sufficient to recoup the fund’s original amount.
In particular, last October, Moniepoint secured $110 million in funding at a $1 billion valuation during a Series C round led by Development Partners International, which allowed Oui Capital to sell some of its shares. With the fund now repaid, any future financial gains will be pure profit for its investors.
This achievement is rare for an emerging venture capital firm—many fail to return their first fund, both globally and particularly within Africa’s venture capital landscape. Yet, it highlights the profitable potential of early-stage investments, especially in the fintech sector on the continent. Oui Capital is now alongside other pan-African firms such as CRE VC and 4DX Ventures, which, after backing notable unicorns like Andela and Flutterwave, have also returned their initial funds, as indicated by sources familiar with the continent’s investment dynamics.
TechCrunch reached out to Oui Capital for a comment, and the firm confirmed this information.
When Oui Capital first evaluated Moniepoint, which was then known as TeamApt, back in 2019, the company was not widely recognized. At that point, it primarily developed financial products and software for its own use and for banks.
Founded by Olu Oyinsan and Francesco Andreoli, Oui Capital was one of the early supporters of Moniepoint and one of the few who encouraged its strategic shift towards becoming a business banking and payment solution, now the largest merchant acquirer in Nigeria.
“They have supported us at each stage, from finding a product-market fit to reaching production,” said Tosin Eniolorunda, co-founder and CEO of Moniepoint, in a 2021 video. “Olu, as the managing partner at Oui Capital, has been instrumental in providing advisory support; we frequently discuss strategy, governance, and other critical matters impacting the company. They have also assisted in our fundraising efforts, bridging us to potential investors as well as refining our narrative and market positioning.”
Exits within Africa’s technology sector continue to be uncommon, with only 143 out of 2,971 venture transactions leading to exits since 2019, according to The Big Deal. Many startups are still in their nascent or growth phases, lacking the maturity required for significant exits. In contrast to developed markets, which have established M&A and IPO pathways, Africa’s tech ecosystem is still evolving, resulting in a limited number of startups being exit-ready.
Moreover, venture investments commonly require five to ten years to mature, which means many African-focused VC firms are still waiting for their returns. For Oui Capital, this wait lasted five years. When the firm participated in Moniepoint’s seed round, the company’s valuation was just $12.5 million, as detailed in an investor report obtained by TechCrunch.
An informal observation suggests that smaller funds are more likely to yield returns due to their size. Data from Cambridge Associates, which designs and manages investment portfolios for institutional clients, supports this trend.
More significantly, Oyinsan attributes his fund’s successful trajectory to strategic portfolio construction. “It’s not solely about the size of the fund; it also involves your investment choices, entry price, ownership equity, investment amounts, and timing of exits,” he shared with TechCrunch.
Other notable startups in Oui Capital’s portfolio include Duplo, which facilitates digital payment processes for B2B companies in Africa; Maad, a B2B e-commerce platform focusing on fast-moving consumer goods; and Matta, a B2B marketplace for chemicals, all from its initial fund, Mentors Fund 1.
Currently managing 22 startups across two funds, Oui Capital invests up to $400,000 in seed-stage companies throughout Africa.
In 2022, the firm launched its second fund, Mentors Fund 2. Although its initial target was $30 million, it ultimately closed at $12 million, as stated by Oyinsan (Eniolorunda is among the investors in this fund). He also noted that while there are no immediate fundraising plans due to the firm’s strong position, there may be a third fund raised later this year.
Compiled by Techarena.au.
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