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Corporate deals

Nigeria, Kenya, South Africa attracted $3.9 billion VC deals in 6 years

613 VC deals valued at $3.9 billion occurred in Africa between 2014 and 2019.

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Venture Capital VC deals

Fintechs, information technology firms, and other companies in Nigeria, Kenya, and South Africa attracted a total of 613 Venture Capital (VC) deals valued at $3.9 billion, between 2014 and 2019.

This is according to a new report that was released yesterday by Africa Private Equity and Venture Capital Association (AVCA), a pan-African organisation that encourages and monitors VC investments on the African continent.

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Details of the report

According to a copy of the report which was titled “Venture Capital in Africa: Mapping Africa’s start-up investment landscape”, 2019 marked the best year for VC investments on the continent since 2014. A total of 139 deals valued at $1.4 billion were recorded last year alone.

A large portion of these VC deals during the 6-year period was recorded in South Africa, a country reputed for having a “well-developed VC ecosystem”. In specific terms, South African companies attracted 21% of these VC deals, followed by Kenyan companies with 18% and Nigerian companies with 14%.

Interestingly, 21% of these VC deals were said to have gone to African-owned companies that are headquartered outside of Africa, although offering their services (mostly fintech solutions) to consumers on the continent. A prime example of such companies would be Chipper Cash, an African-owned fintech company based in San Fransisco which offers payment services in Nigeria and elsewhere.

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While commenting on the findings contained in the report, AVCA’s board Chair, ‘Tokunboh Ishmael, said:

“Africa’s VC industry continues to grow from strength to strength and we expect 2020 to be another strong year despite global macroeconomic headwinds. The continent’s VC ecosystem showcases the best of African innovation and entrepreneurship, which has the potential to be a key source of solutions to Africa’s intractable problems and a gamechanger for the continent’s development trajectory. AVCA remains committed to supporting the VC industry by charting its growth and providing authoritative research on the asset’s fundraising, deal, and exit activities.”

Further breakdown of the report

The fintech and information technology sectors received a bulk of these VC deals, accounting for 19% of the total volume of deals, respectively. Meanwhile, consumer discretionary and industries accounted for 18% and 12% of the deals, while communications, health care, and consumer staples collectively accounted for 19% of the VC deals over the 6-year period.

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The report noted that a greater percentage of these VC deals streamed in from international investors. The African CV ecosystem was also said to have played a role. Some of these VC investors include AfricInvest, Alitheia Capital, Helios Investment Partners, and IFC Venture Capital.

You may download the full report by clicking here.

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Patricia

Emmanuel covers the financial services sector for Nairametrics. Do you have a scoop for him? Well then, contact him via his email- [email protected]

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Corporate deals

Uber expands food delivery business in a $2.65 billion acquisition 

This deal would help Uber expand its market share against privately held DoorDash Inc.

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The multinational ride-hailing service company, Uber has agreed on a deal aimed at expanding its food delivery business with the acquisition of food delivery app, Postmates Inc, in a $2.65 billion all-stock take over which is expected to be announced as soon as Monday, July 6, 2020. 

According to Bloomberg, the deal which has been approved by the board of directors of Uber, will have the head of Uber’s food delivery business, Pierre-Dimitri Gore-Coty, to continue to run the combined delivery business. Under the agreement, Postmates Chief Executive Officer, Bastian Lehmann and his team will continue to manage Postmates as a separate service. 

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This deal would help Uber expand its market share against privately held DoorDash Inc, the current market leader in US food delivery business. While Postmates lags behind DoorDash in the race for market share, it has still been able to maintain a strong position in Los Angeles and the American Southwest, both of which could be available to Uber eats. 

READ ALSO: Uber Introduces Uber Cash In Nigeria

Uber and Postmates who have been in discussion for about 4 years, intensified the acquisition talk about a week ago, after an approach by Uber. This move is coming on the heels of the failed bid by Uber to acquire publicly quoted GrubHub Inc, which was bought over by Europe’s Just Eat Takeaway.com NV for $7.3 billion. 

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Postmates’ valuation was last put at $2.4 billion when it raised $225 million in a private fundraising around last September. According to analytics firm, Second Measure, they account for 8% of the US meal delivery market in May.  

READ ALSO: In less than 72 hours USDC Treasury transfers over 50,000,000 USDC to wallets

Postmates, which was founded in 2011 was one of the first to let customers in the U.S. order meal delivery using a mobile app. However, competition has intensified in recent years and Postmates has fallen to a distant fourth. The company said in February 2019 that it had filed paperwork confidentially for an initial public offering but never went public.  

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Corporate deals

Ekiti State secures UN and SHS Holdings partnerships to invest $2 billion to build 50,000 homes

The UN Office for Project Services and SHS will mobilize 3rd party investors to fund the initiative.

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Ekiti state government imposes curfew, full lockdown, Ekiti state slashes Right of Way charges for Telecom infrastructure from 4500 to 145, Ekiti State Secures UN and SHS Holdings partnerships to invest $2 billion for building 50,000 homes

The government of Ekiti State has announced it has partnered with the United Nations Office for Project Services (UNOPS) and the Sustainable Housing Solutions (SHS) Holdings to build 50,000 homes with renewable energy from 2020-2030 in Ekiti State.

The programme is part of the UNOPS Sustainable Infrastructure Impact Investment (S3I) initiative. “The agreement will help address the housing shortages in Ekiti State with a focus on sustainability and local economic development,” The UN said.

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READ MORE: UAE firm partners DBillions to address housing shortages in Lagos

Speaking on the initiative, Ekiti State Governor, Dr. Kayode Fayemi said, “We are very excited to partner with UNOPS and SHS to deliver affordable housing to the people of Ekiti.”

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READ ALSO: UAE firm partners DBillions to address housing shortages in Lagos

“This is how our promise of developing Ekiti and improving the lives of the people can be achieved. This partnership has come at an important time, during the COVID-19 pandemic, which has reminded us of the need to deliver quality social infrastructure to the people,” he added.

UNOPS and SHS will mobilize 3rd party investors to fund the initiative which is valued to cost $2 billion.

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The UNOPS S3I aims to build at least in million homes in multiple countries in 3 continents over the next decade.

 

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Corporate deals

Actis-backed group acquires Nigerian university

The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe.

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Actis-backed group acquires Nigerian university

Honoris United Universities, an African education group backed by Actis, has acquired the Nile University in Abuja, its first University acquisition in Nigeria and the entire West African region.

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The CEO, Luis Lopez announced that the deal was closed back in February before the COVID-19 pandemic spread across the continent.

READ ALSO: NCC disburses N100 million to universities for ICT Research

The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe. Now, it wants to add Nigeria to its portfolio.

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In 2017, the private equity firm, Actis, set up a $275 million higher education platform for Africa through the Honoris United Universities initiative.

1,700 students have so far graduated from the insitution since it was founded in 2009 and it currently has 3,500 students with a tuition of $6,700 (N2.4 million).

READ ALSO: Growth must be seen in citizens’ lives, AfDB President to African leaders 

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The CEO said it noticed a demand for high-quality education in Nigeria and plans on expanding its student base to 10,00 in six years.

Honoris will also expand its digital distance learning programmes with the aim of attracting students in Lagos and 2 other cities in northern Nigeria.

READ MORE: Nigeria, Kenya, South Africa attracted $3.9 billion VC deals in 6 years

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