Verod-Kepple Africa Ventures (VKAV), a venture capital firm focused on Africa, has successfully closed its inaugural fund at $60 million. This funding will be used to support up to 21 growth-stage companies across the continent. The fund, which held its initial closing in 2022 and a second closing in 2023, has garnered support from several prominent long-term investors, including Japanese institutional players like SBI Holdings, Toyota Tsusho Corporation, Sumitomo Mitsui Trust Bank, the Japan International Cooperation Agency, and the Japan ICT Fund.
New investors joining the fund include Nigeria’s SCM Capital (formerly Sterling Capital Markets Limited), Taiyo Holdings, and C2C Global Education Japan, among others. The firm was established in 2022 through a partnership between Verod Capital Management, a West African private equity firm, and Kepple Africa, a Tokyo-based VC firm, led by Ory Okolloh, Ryosuke Yamawaki, and Satoshi Shinada.
Despite the ongoing investment slowdown in Africa, VKAV marks a positive development in the region’s venture capital landscape. The fund’s capital will provide essential support for Series A and B startups in Africa, particularly as funding for growth-stage businesses becomes increasingly scarce.
Ory Okolloh, a partner at VKAV, highlighted the rapid growth in pre-seed and seed funding in recent years but pointed out the critical gap in growth-stage capital. He emphasized that the firm’s focus will be on Series A and B companies, though they are open to pre-Series A investments if the opportunity is compelling. Okolloh stressed the need for more locally-based growth-stage capital in Africa.
VKAV plans to provide more than just funding, offering hands-on support to portfolio companies as they scale. This includes implementing best practices in operations, improving governance structures, and navigating the region’s complex macroeconomic conditions.
The fund will primarily target companies that are driving infrastructure development for the digital economy, addressing business inefficiencies, and creating products tailored to the emerging African consumer market.
To date, VKAV has invested $17.5 million, with each startup receiving between $1 million and $3 million, including potential follow-on investments. The fund’s portfolio currently includes 12 startups from various sectors, such as mobility, finance, insurance, energy, and healthcare, operating in countries including Nigeria, Egypt, Kenya, Morocco, Ivory Coast, and South Africa.
Looking forward, VKAV aims to explore investment opportunities in other African countries such as Angola, Zambia, the Democratic Republic of the Congo, and Tunisia as part of its broader pan-African mission.
