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At a recent investor meeting, early stage African investors Yes capital informed limited partners that it had returned its $4 million in debut funding after selling some shares in the business banking platform Moneypoint.
The African fintech unicorn has so far proved to be a standout investment for five-year-old Ouyi Capital. When it launched its first fund, it invested $150,000 in the Nigeria-based company, an initial bet that has since generated $8 million in returns — enough to repay the fund.
Especially, last October, when Moniepoint The fund raised $110 million at a $1 billion valuation In a Series C round led by Development Partners International, Ouyi Capital sold some of its stake in the deal; Now, with his funds paid off, any future earnings will be pure profit for his investors.
This is a rare feat for a young VC firm—many around the world fail to return their first funding—and even rarer in Africa’s venture ecosystem. Still, it underscores how lucrative some early-stage bets on the continent, particularly fintech, can be. Oui Capital joins other pan-African investors CRE VC And 4DX Ventures Those who have returned their first funding after backing other unicorns, e.g Andela And FlutterwaveInvesting in the continent, according to two people familiar with the transaction.
TechCrunch has reached out to Ouyi Capital for comment and the firm has confirmed the news.
Moniepoint, formerly known as TeamApt, wasn’t a household name when Oui Capital first considered it in 2019. At the time, the company primarily developed financial products and software for itself and banks.
Founded by Oui Capital, Olu Winsan And Francesco Andreoliwas among its earliest investors and one of the few to support the organization’s pivot to MoneyPoint, a business banking and payments platform that has since become Nigeria’s largest merchant acquirer.
“They were with us all the way from finding product-market fit to going into production,” Moneypoint co-founder and CEO Tosin Enyoluwadara said of Owi Capital in 2021. video. “The voice [managing partner at Oui Capital] The advisor has been helpful; We talk through strategy, governance, and key issues affecting the company. They have been instrumental in our investment promotion, from introducing potential investors to sometimes just brainstorming our details and position…”
Exits are rare in Africa’s tech scene. Only 143 out of 2,971 venture deals 2019 leads to an exit, according to The Big Deal. Most startups are still in their early or growth stages — far from the maturity needed for a significant exit. Unlike developed markets with strong M&A and IPO options, Africa’s tech ecosystem is still growing, leaving fewer startups in an exit-ready state.
On the other hand, venture investments typically take 5-10 years to mature, so many African-focused VC firms are still waiting for returns. For Oui Capital, that wait took five years. When the firm joined MoneyPoint’s seed round, the company was valued at $12.5 million, according to an investor report seen by TechCrunch.
Anecdotally, smaller funds are easier to return because of their size. data From Cambridge Associates, which builds and manages investment portfolios for institutional investors, supports this trend.
But more importantly, Oyinsan credits building his firm’s portfolio for the firm’s traction. “It’s not just about the size of the fund—it’s about what you invest in, your entry price, how much equity you own, how much you invest and when you decide to exit,” he told TechCrunch.
Oui Capital’s portfolio includes other startups Doublewhich digitizes the flow of money for African B2B enterprises; the worldA B2B e-commerce platform for fast-moving consumer goods; And MattaA B2B marketplace for chemicals, from its first fund, Mentor’s Fund 1.
Investors, including 22 startups across two funds, wrote checks of up to $400,000 to seed-stage startups across Africa.
In 2022, Ouyi Capital launched a second fund, Mentors Fund 2. Although early stage firms The initial goal is $30 millionAccording to Oyinsan, it closed at $12 million. He also shared that there are no plans to rush the fundraising due to the fund’s strong position, but it may raise a third fund later this year.
