KENYA – Regional African flavour house, Afribon Group has closed an equity financing agreement with the investment firm Investisseurs & Partenaires (I&P), bringing its total capital raised to US$2 million.

According to the company, the I&P injection will help accelerate growth in its existing operations while supporting development in new countries.

Apart from implementing transversal projects across the group, the proceeds will be used to finance new production line in Kenya and start operations in Nigeria.

Afribon was one of the companies that received the first disbursements made from I&P’s US$59 million IPAE 2 fund, which invests in small and medium sized businesses in Africa that combine economic profitability with societal impact.

Other firms included Kenya-based African Management Initiative (AMI) and Senegalese fintech startup CoinAfrique.

“More and more we meet companies such as Afribon, AMI or CoinAfrique, aiming for multi-country expansion.

Besides, African companies are increasingly integrating new technologies into their service offering or business model,” said Jérémy Hajdenberg, chief investment officer at I&P.

Launched in 2012, Afribon is specialized in the development, production and marketing of food flavours and comprises five production sites, in Cameroon and East Africa (Kenya, Uganda, Rwanda, Tanzania).

The Pan-African food flavour development company provides flavour solutions in beverages, food service, confectionery, baked goods and dairy category.

It offers insights on development of new product ideas to formulation, recipe adjustment and initial production set up.

I&P was launched in 2002 with a commitment to contribute to development of a sustainable and dynamic private sector in Sub-Saharan Africa.

IPAE 2 targets US$92.4 million with an aim to invest in between 30 and 40 startups and SMEs over the next five years in Sub-Saharan Africa, particularly in West and Central Africa, but also in East Africa and Madagascar.

A second closing between US$80.8 million and US$86.6 million will be announced by the end of 2018.