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At a recent investor meeting, the first phase of the African investor Yes Capital announced to limited partners that it has returned its $4 million debut fund after selling some shares of its business banking platform Moniepoint.
The African fintech unicorn has so far proven to be a standout investment for five-year-old Oui Capital. When it launched its first fund, it invested $150,000 in the Nigeria-based company, an early bet that has since generated $8 million in returns—enough to pay off the fund.
In particular, last October, when Moniepoint raised $110 million in funding at a $1 billion valuation in the Series C round led by Development Partners International, Oui Capital sold some of its shares to the deal; now, with his funds paid up, any future returns will be pure profit for his investors.
This is a rare feat for a young VC firm — many around the world fail to recoup their initial funding — and is particularly rare in Africa’s venture ecosystem. However, it does highlight how lucrative some early-stage bets, particularly in fintech, can be on the continent. Oui Capital joins other pan-African investors such as CRE VC and 4DX Ventures which returned their first funds after backing other unicorns, such as Angela and Flutterwaveaccording to two people familiar with the investor’s dealings on the continent.
TechCrunch contacted Oui Capital for comment, and the company confirmed the news.
Moniepoint, formerly known as TeamApt, was not a household name in 2019 when Oui Capital first considered it. At the time, the company was primarily building financial products and software for itself and banks.
Oui Capital, founded by Olu Oyinsan and Francesco Andreoliwas one of the earliest investors and also one of the few who supported the outfit’s pivot to Moniepoint, a business banking and payment platform that has become the largest merchant buyer in Nigeria.
“They accompany us through the stages, from finding product market fit to the arrival of production,” said Tosin Enioluwadara, co-founder and CEO of Moniepoint, about Oui Capital in 2021 video. “Olu (Oui Capital’s managing partner) helped with the advisory; we talk through strategy, management, and key factors that affect the company. They also help with our investment campaigns, from introducing potential investors to sometimes just thinking about our narrative and position…”
Exits in the African tech scene remain rare, with only 143 out of 2,971 venture deals since 2019 leading exits, according to The Big Deal. Most startups are still in their early or growth stages – far from the maturity required for significant exits. Unlike developed markets with strong M&A and IPO options, Africa’s tech ecosystem continues to grow, leaving fewer startups in an exit-ready position.
On the other hand, venture investments usually take 5-10 years to mature, so many VC firms focused on Africa are still waiting for returns. For Oui Capital, that wait took five years. When the company participated in Moniepoint’s seed round, the company was valued at a $12.5 million valuation, as revealed in an investor report seen by TechCrunch.
Anecdotally, smaller funds are easier to turn around because of their size. Data from Cambridge Associates, which builds and manages investment portfolios for institutional investors, bucks this trend.
But above all, Oyinsan credits building his fund’s portfolio for the company’s traction so far. “It’s not just about the size of the fund — it’s about what you invest in, your entry price, how much you own, how much you invest, and when you decide to exit,” he said. at TechCrunch.
Other startups in Oui Capital’s portfolio include doublewhich digitizes payment flows for African B2B businesses; EARTHa B2B e-commerce platform for fast moving consumer products; and Matthewa B2B marketplace for chemicals, from its first fund, Mentors Fund 1.
The investor, who has 22 startups in two funds, writes checks of up to $400,000 for seed-stage startups across Africa.
In 2022, Oui Capital launched a second fund, Mentors Fund 2. While the early stage company initially targeting $30 millionit closed at $12 million, according to Oyinsan. He also shared that while the fund has no plans to rush fundraising due to its strong position, it may raise a third fund later this year.
