African venture capital firm Janngo Capital recently announced the final close of its second fund, securing €73 million ($78 million), exceeding its initial target of €60 million ($63 million). The firm, led by founder Fatoumata Bâ, initially marked the first close at €60 million in 2022, drawing investments from prominent backers including the African Development Bank Group (AfDB) and European Investment Bank (EIB). These key investors were joined by a diverse lineup of additional institutional contributors, such as the Mastercard Foundation Africa Growth Fund, Tunisia’s ANAVA fund, and the endowment fund of Ghana’s Ashesi University, along with the U.S. International Development Finance Corporation (DFC) and the World Bank’s International Finance Corporation (IFC).
Development finance institutions like the DFC and IFC play a crucial role in Africa’s startup ecosystem, particularly in supporting funds that focus on early- and growth-stage investments. With fewer local institutional investors participating, Janngo Capital’s success in attracting both local and international funding showcases a growing confidence in Africa’s venture capital landscape, providing a valuable signal to international investors.
Expanding Access to Venture Capital in Africa
Despite Africa accounting for 17% of the global population, it receives only 1-2% of global venture capital, a figure that has remained low despite growth in capital raised — from $150 million a decade ago to $4-5 billion today. “If we believe tech is critical to economic development in Africa, we should have proportional access to VC,” Bâ commented, emphasizing that Janngo Capital’s mission includes drawing in private and African limited partners (LPs) to strengthen regional investment.
Janngo Capital also positions itself as a “gender-equal” investor, with an impressive 56% of its portfolio companies being female-led, including Sabi, a Nigerian B2B e-commerce platform helmed by a female CEO. “As a female-founded and female-led fund, we prioritize investing in female entrepreneurs. Africa leads globally in female entrepreneurship rates, yet female founders receive a small fraction of global VC funding,” Bâ highlighted.
Continued Focus on Impactful Investments
Janngo Capital’s investment strategy remains focused on supporting diverse founders in sectors such as healthcare, logistics, financial services, retail, agritech, mobility, and the creator economy. Since the close of its first fund in 2018, Janngo has made over 30 investments across 21 startups. With the additional funds raised, Janngo now aims to increase its portfolio to 25-40 companies, investing in 10-15 more startups over the next five years.
Janngo’s portfolio features notable successes, including its early backing of Expensya, which achieved a significant exit with a $120 million acquisition by Swedish software firm Medius. Sabi, another key investment, has reached a gross merchandise volume of $1 billion annually. “It’s essential to show early exits as proof of value creation, particularly in a challenging fundraising environment,” said Bâ. Janngo’s conviction-led approach, which has seen it participate as the first African VC in Expensya, is a testament to the firm’s commitment to nurturing promising African startups to successful outcomes.
Building a Thriving Future for African Startups
With offices in Abidjan, Mauritius, Tunis, and Paris, Janngo Capital’s footprint reflects its focus on supporting entrepreneurs across diverse regions. The firm’s investments range from €50,000 to €5 million, catering to companies at the seed through Series B stages. Janngo’s continued growth signals a shift in the African VC landscape, where early successes and high-impact investments are helping to lay the foundation for a more vibrant and sustainable startup ecosystem.
