Investment firm Goodwell unveils US$60m feeder fund to support high growth SMEs in Africa

AFRICA – Goodwell investments, an Impact investment firm, is set to allocate follow-on funding to existing companies in its portfolio, operating in the food, agriculture, ecommerce sectors in Africa, among many others.

The targeted companies include Good Nature Agro, a Zambian for-profit social enterprise that believes in farmer-centric impact; Tomato Jos, a Nigerian agro-processing company focused on the local production of high-quality tomato paste; Copia, one of Africa’s most promising ecommerce businesses based in Kenya; and Nomanini, a South Africa headquartered fintech platform that connects financial service providers and fast-moving consumer goods companies to retail MSMEs.

According to reports by Africa Global Funds, Goodwell will undertake the investment in the existing companies and new ones through its recently launched Goodwell V.

“We are convinced that businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa. Therefore, the path to inclusive growth in Africa is to support early-stage companies who are best positioned to solve critical challenges in their communities.”

Nico Blaauw – Goodwell Director of Communications

Goodwell V is a €50m (US$60m) cornerstone feeder fund for a new institutional fund that the company plans to launch in the second half of this year.

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Following on from predecessor funds, Goodwell V aims to channel capital from private investors, family offices and foundations to fast-growing, scalable small and medium-sized companies. 

The firm’s local teams in Nigeria, Kenya and South Africa have made more than 20 investments across Africa over the last five years, successfully balancing substantial social impact with delivering a market rate of return to investors.   

“We are convinced that businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa. Therefore, the path to inclusive growth in Africa is to support early-stage companies who are best positioned to solve critical challenges in their communities.”

“Our portfolio companies are showing average revenue growth of over 50% per annum. They have been able to withstand the perils of the pandemic by doing what they do best: providing access to essential products and services like food, transport, healthcare, and financial services. We are excited to continue the journey,” Nico Blaauw, Goodwell Director of Communications, said.

Goodwell V will build a new portfolio of companies across various sectors in Africa: at least a quarter will be invested in agriculture, a third in financial inclusion, and the remainder in mobility and other impact sectors such as education and healthcare.

“When we met Goodwell, in 2011, we were still at a very early stage and had no formal institutional investors on board. The first investment by Goodwell enabled us to kick-start our journey, and the second one in 2015 further accelerated our growth.

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“In 2020 we passed the mark for 17 million users, whom we serve through a network of over 35,000 agents. We see the opportunity to connect every adult in Nigeria to financial services, and we are delighted Goodwell see things the same way,” Tayo Oviosu, founder and CEO of Goodwell Investments’ portfolio company, Paga, said.

Having provided over €150m in funding to 35 inclusive businesses across Asia and Africa over the past 15 years, Goodwell Investments has a long-standing commitment to impact investment while reporting top-quartile returns at the same time. 

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