Investors update: January 31 2023

Adenia Partners reaches $300m first close for fund V

Highlights

• Adenia Partners, a private markets investment firm focused on Africa, has announced the first close of its fifth flagship fund, Adenia Capital (V) L.P. with $300 million commitments from investors.
• The Fund exceeded its first close minimum threshold, achieving 75% of its target size, and attracting returning institutional and commercial investors as well as new investors. 
• Adenia V has a target size of $400 million and will continue the firm’s long-term investment strategy of making control investments in medium-sized, ESG-focused companies across Africa.

Source: ABC

Our Takeaway

Africa is a diverse investment destination with significant potential opportunities in not only public markets but also private markets, for which local expertise and experience are paramount to achieving successful outcomes. Adenia has expanded its geographic footprint over the lives of its previous funds. This fifth fund is its first fully pan-African, leveraging the firm’s extensive on-the-ground presence across the continent to source and manage investments. Adenia V will target between 10 and 12 investments, with a median deal size between $30 million and $50 million.

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Amazon launches new AWS Local Zones in Nigeria

Highlights

• Amazon has launched a new Amazon Web Services (AWS) Local Zones in Lagos, one of only 15 outside the United States. 
• The new facility is a type of infrastructure deployment that places AWS computing, storage, databases, and other services near large populations, industries, and information technology (IT) centers.
• The proximity of AWS Local Zones to the Lagos metropolis is expected to help improve the development and performance of applications that Lagosians and Nigerians—in the broader sense—use to access these services.

Source: Nairametrics

Our Takeaway

Africa still grapples with the lack of continent-wide digital infrastructure like data centers and fiber optic networks crucial for a digitally included region. Over the past few years, significant investments have been poured into the space with the hope of bridging this gap and setting Africa on the path to becoming a truly digital economy. Africa Data Centres recently launched two new centers in Kenya and South Africa. The Africa data center market was valued at $2 billion in 2020 and is expected to grow to $5 billion by 2026, at a CAGR of 15%.

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Nigerian fintech Trade Lenda raises $520m pre-seed round

Highlights

• Fintech startup Trade Lenda, which helps Nigeria-based micro, small and informal retailers with affordable financing, has raised $520,000 in pre-seed funding.
• Founded in 2021, the Lagos-based startup’s data-driven credit-scoring platform evaluates character and capacity to bridge access to quick and efficient finance gaps for small retailers and suppliers.
• It grew 5x between 2021 and 2022, per the company’s statement, and now plans to grow revenues 10x in 2023.

Source: Disrupt Africa

Our Takeaway

Access to capital remains a significant barrier to the growth of many small businesses in Africa—available data shows a $330 billion financing deficit for the small enterprises that make up 90% of businesses on the continent—and it’s a problem several startups and foreign investors are particularly keen to address as it promises attractive returns. Trade Lenda claims to have provided credit to over 1,500 businesses with over $2 million in disbursements, with an average disbursement time of around six hours.