SBI backs Africa's Novastar with $40m amid growing interest from Japan

Key Takeaways

One of the most significant trends in African tech in recent years has been the notable increase in investment from Asian powerhouses, particularly China. This surge in interest has expanded the funding options for African startups, which had traditionally relied on Silicon Valley and European venture capital firms. However, this trend is now diversifying further with growing interest from Japan, where a mix of early-stage and corporate venture capital investors are exploring opportunities on the continent. In addition to AAIC and SBI's support for Novastar, there are other Japanese entities entering the African tech landscape. Kepple Africa Ventures boasts a portfolio of more than 100 African companies and manages a $100 million fund. Uncovered Fund, founded in Tokyo in 2019, has invested in 26 African startup companies. Notably, blue-chip Japanese companies are also showing increasing interest: Auto giant Toyota via Mobility 54—a VC unit dedicated to investing in African mobility startups—backed the now-defunct Sendy in a $20 million Series B round. Manufacturing giant Yamaha also participated in a $7 million funding round for Nigeria’s MAX.ng.