Three years before investing $150,000 in Moniepoint for a 1.2% stake, Olu Oyinsan, Managing Partner at Oui Capital, recognized the fintech’s potential upon meeting its CEO, Tosin Eniolorunda. Eniolorunda’s deep knowledge of banking infrastructure stood out, reinforcing Oyinsan’s confidence in the company’s future.
Believing Moniepoint’s $12 million post-money valuation was undervalued given its strong market interest and financial discipline, Oui Capital, alongside Global Ventures, Soma Capital, and Kepple Africa, participated in Moniepoint’s 2021 seed round. The decision was driven by the company’s exceptional engineering team, which had the capability to resolve high transaction failure rates—a prevalent issue at the time.
A month before that funding round, Eniolorunda boldly predicted Moniepoint’s path to becoming a unicorn. Three years later, when the company achieved unicorn status, Oui Capital partially exited its initial investment, returning $8 million—twice the total amount of its first fund. This milestone came at an opportune time, particularly as Oui Capital explores raising a third fund.
Oui Capital’s investment approach was guided by strong convictions. While many investors focused on YC-backed fintechs such as Paystack, Flutterwave, Kuda, and PiggyVest, Oui Capital identified Moniepoint’s differentiated approach to serving businesses. They saw the opportunity beyond industry trends and backed a company with a deep-rooted understanding of local market challenges.
Beyond capital investment, Oui Capital took an active role in advisory and governance. They assisted with setting up a funding trajectory, ensuring a structured growth path from seed to Series A and beyond. They also helped recruit top talent and facilitated investor buyouts that were critical to Moniepoint’s strategic pivot.
Moniepoint experienced 1000% growth during COVID-19, further accelerated by the Central Bank of Nigeria’s cashless policy, which led to an annual 100% growth rate. As a result, Oui Capital made the strategic decision to partially exit during Moniepoint’s $110 million Series C round, balancing liquidity for its investors while maintaining exposure to future upside.
Managing investor expectations, especially among Nigeria-based limited partners (LPs) unfamiliar with venture capital, required careful navigation. While some LPs pressured for an early exit, Oui Capital balanced short-term gains with long-term potential, ensuring sustained involvement in Moniepoint’s continued growth.
Returning an entire fund is an uncommon feat in African venture capital, but Oui Capital attributes its success to three core principles; strategic portfolio construction (investing at the right stage, at the right valuation, and with the right ownership stake), founder-centric support (going beyond capital to actively assist in structuring funding rounds, talent acquisition, and governance) and an ambitious, data-driven team (making calculated investment decisions based on deep analysis and long-term vision).
Oui Capital’s first fund of $4 million benefited from its relatively small size, allowing for high-impact returns. The firm’s second fund closed at $12 million, significantly increasing its capital base despite macroeconomic challenges.
While fintech remains a dominant sector in Africa’s tech landscape, Oui Capital remains open to new opportunities in emerging industries. The firm is currently focused on deploying its second fund, with early discussions about raising a third fund.
Oyinsan emphasized that a company doesn’t need to be a unicorn to be successful. He remained optimistic about discovering the next wave of high-growth African startups that can deliver outsized returns for investors.
