How African VC firm Oui Capital raised its first fund with Moniepoint’s unicorn exit

At a recent meeting of investors, early stage African investor Yes Capital has informed limited partners that it has returned its $4 million debut fund after selling some shares in the commercial banking platform. Moniepoint.

The African fintech unicorn has so far proved an outstanding investment for five-year-old Oui Capital. When he launched his first fund, he invested $150,000 in the Nigerian company, an initial bet that has since generated a return of $8 million—enough to pay back the fund.

In particular, last October, when Moniepoint raised $110 million in funding at a $1 billion valuation in a Series C round led by Development Partners International, Oui Capital sold some of its shares in the deal; now, with its fund repaid, any future return will be a pure profit for its investors.

It is a rare feat for a young VC firm – many around the world fail to raise their first fund – and even rarer in the venture ecosystem in Africa. However, it does highlight how lucrative some early-stage bets, particularly in fintech, can be on the continent. Oui Capital joins other pan-African investors such as CREATE VC and 4DX Ventures who returned their first funds after backing other unicorns, such as Andela and Flutterwaveaccording to two people familiar with investor dealings on the continent.

TechCrunch contacted Oui Capital for comment, and the firm confirmed the news.

Moniepoint, formerly known as TeamApt, was not a household name in 2019 when Oui Capital first considered it. At that time, the company mainly built financial products and software for itself and banks.

Oui Capital, founded by Olu Oyinsan and Francesco AndreoliHe was among its first investors and also one of the few to back the outfit’s pivot to Moniepoint, a banking and merchant payment platform that has become Nigeria’s largest merchant.

“They have been with us through the stages, from the search for adaptation to the product market to the arrival at production,” Tosin Enioluwadara, co-founder and CEO of Moniepoint, said of Oui Capital in a 2021. video. “Olu (managing partner in Oui Capital) has been useful in the board; We talk through the strategy, governance and the key things that affect the company. They have also been useful in our investment campaigns, from the introduction of potential investors sometimes just thinking about our narrative and positioning…”

Exiting the African tech scene remains rare, with only 143 of 2,971 venture businesses since 2019 leading to the exit, according to the Big Deal. Most startups are still in their early or growth stages – far from the maturity needed for meaningful uses. Unlike developed markets with robust M&A and IPO options, the African tech ecosystem is still growing, leaving fewer startups in an exit-ready position.

On the other hand, venture investments typically take 5-10 years to mature, so many VC firms focused on Africa are still waiting for returns. For Oui Capital, this wait took five years. When the company joined Moniepoint’s seed, the company was valued at $12.5 million, as revealed in an investor report seen by TechCrunch.

Anecdotally, smaller funds are easier to turn because of their size. Data from Cambridge Associates, which builds and manages investment portfolios for institutional investors, is increasing this trend.

But more importantly, Oyinsan credits the construction of his fund’s portfolio for the firm’s traction to date. “It’s not just about the size of the fund, it’s about what you invest, your entry price, how much equity you own, how much you invest, and when you decide to exit,” he told TechCrunch.

Other startups in Oui Capital’s portfolio include Doublewhich digitizes payment flows for African B2B businesses; Eartha B2B e-commerce platform for fast moving consumer goods; and Matta B2B marketplace for chemicals, from its first fund, Mentors Fund 1.

The investor, with 22 startups in two funds, writes checks of up to $400,000 for seed-stage startups across Africa.

In 2022, Oui Capital launched a second fund, Mentors Fund 2. While the first phase company. initially targeted at $30 millionit closed at $12 million, according to Oyinsan. He also shared that while the fund has no plans to rush into fundraising due to its strong position, it could raise a third fund later this year.