Investors update: June 16 2023 - Goodwell Investments reaches first close of $154m uMunthu II fund

Goodwell Investments reaches first close of $154m uMunthu II fund

Highlights

• Goodwell Investments and Alitheia Capital have received $62 million in commitments to the uMunthu II fund, which aims to finance small business growth in Africa.
• The funding comes from a collection of family offices, private investors, and institutional investors, creating significant momentum for the fund, which is expected to reach its final close within two years—with a minimum target of $154 million.
• In addition to uMunthu II, Goodwell aims to welcome new family offices and institutional investors to its network who are looking for growth opportunities that match their impact and financial objectives. 

Source: ABC

Our Takeaway

Despite growth opportunities, African entrepreneurs need more funding to reach their potential. Venture capitalists injected a record USD 6.5 billion into the 54 African countries in 2022. Yet that pales in comparison to the USD 200 billion raised in the United States alone that same year. uMunthu II is specifically investing in early and growth-stage SMEs, and actively seeking out women-led businesses because currently, only 15% of venture capital funding is going to companies founded and or led by women. 

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YC-backed Eze secures $3.7m for its secondhand electronics marketplace

Highlights

• Eze, a B2B marketplace that connects global electronic wholesalers allowing them to trade devices in large quantities with real-time market data, has raised $3.7 million in an oversubscribed seed round. 
• Founded in 2020, Eze directly connects distributors and retail stores of used smartphones, mostly iPhones, and other electronics, including laptops and tablets, with electronics suppliers, providing access to an extensive inventory from over a hundred wholesalers and manufacturers.
• The aim is to formalize trade in areas such as Lagos’ Computer Village, Nigeria’s busiest electronics market, by connecting retail stores and distributors to telecom companies and wholesalers of electronics in the U.S.

Source: TechCrunch

Our Takeaway

Africa might be one of the fastest-growing mobile phone markets in the world but affordability remains a key barrier to smartphone penetration, which is key to powering Africa’s digital economy. Feature phones dominate the continent, although smartphone penetration is deepening. With most consumers turning to second-hand devices, Eze is tapping the growing refurbished and used mobile phones market, which is expected to hit $146 billion by 2030, growing at a CAGR of 11%.

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Egypt’s Stllr partners Payoneer to enable SMEs transact globally

Highlights

• Egypt’s Stllr, a regional network of independent creators and boutique agencies, has partnered with Payoneer, a financial technology company helping small and medium-sized businesses to transact globally.
• Launched in December 2021, Stllr reduces wasted costs in marketing departments and miscommunication with external vendors, offering companies a plug-and-play marketing model by experimenting with different campaigns like SEO, media buying, social media, and more.
• The partnership with Payoneer will enable Stllr to make real-time settlements available to their independents utilizing Payoneer’s payment platform. 

Source: Disrupt Africa

Our Takeaway

In Africa, startups like ArabyAds and Stllr have emerged offering platform-based solutions that help African businesses optimize marketing tasks across online and offline platforms. And as the e-commerce industry, particularly in the Middle East and North Africa (MENA) region grows, the market opportunity is substantial. In 2017, the market was worth $8.4 billion, with an annual growth of 25% since 2014, and is predicted to reach $28.5 billion by the end of this year.