(*12*)Saviu Venturesa enterprise capital agency focusing on startups in French-speaking Africa, has closed an preliminary spherical of €12 million for its second fund with the backing of personal traders, together with French and Kenyan household workplaces.
The VC agency goals to shut the fund between 30 and 50 million euros to make investments primarily in startups in French-speaking Africa. It is claimed to be in talks with different events, together with institutional traders, to obtain the goal.
The enterprise capital agency invests in early-stage startups and is sector agnostic, however, with the present fund, is eager on fintech, well being tech and local weather tech, whereas slowing down on electrical mobility, e-commerce and e-logistics.
“We will follow the same strategy as our first fund, where the majority of our investments will go to startups in the Francophone region, but we still maintain the opportunity to invest in startups from East, Southern and Northern Africa that are keen to expand into the Francophone region. Africa,” Delestre instructed RockedBuzz.
Saviu plans to make investments between €500,000 and €3 million in 15-20 post-revenue startups with its second fund. Delestre and Touboul mentioned the VC agency targets “sustainable businesses” and extends enterprise growth support to these companies in addition to monetary funding. The second fund has already supported Waspito, a Cameroonian well being know-how firm; Rubyx, a Senegalese digital lending SaaS supplier; and Workpay, an HR payroll supplier.
“We look for sustainable businesses. We don’t want to target unicorns because we’re not interested in companies or business models that insist on burning money. Our belief is to support talented entrepreneurs in creating sustainable businesses,” mentioned Touboul.
VCs goal African international locations past the “Big Four”
Saviu’s first fund invested between 250,000 and 500,000 euros in 12 startups, 82% of which got here from the French-speaking area. Portfolio corporations embody Anka (Afrikrea), an e-commerce platform; Julaya, an Ivorian neobank; Zanifu, a Kenyan digital lender; Lapaire, an eyewear retailer with operations in Ivory Coast, Mali, Burkina Faso, Benin and Togo; and Paps, a Senegalese e-logistics startup.
Saviu is amongst the first VC companies to look particularly at the Francophone area, an ecosystem that continues to appeal to VCs due to decrease competitors, large market alternatives and high-quality, better-priced offers in contrast to extra mature Anglophone areas.
Outside of the large 4 international locations (Egypt, Kenya, Nigeria and South Africa), the Francophone area continues to be the subsequent funding vacation spot for VCs. According to the 2022 Partech report, the area accounted for 49% and 38% of the remainder of Africa’s offers and funding respectively final yr. Notably, fairness financing in the area remained nearly unchanged final yr, having grown 2% to $527 million in contrast to 2021, when it noticed a mammoth 695% year-over-year development.
“The ecosystem in French-speaking Africa is much more developed today than in 2018, when there were fewer founders and no incubators. It’s still a long way from what you see in Kenya or South Africa, but it’s much better now,” Delestre mentioned.