Goodwell and Oxfam Novib to Support East African Startups with €20 Million Pepea Fund

 

A €20 million ($21.7 million) fund called Pepea has been established by Goodwell Investments and Oxfam Novib, a Dutch charity and subsidiary of Oxfam International, with the goal of fostering a more equitable economy.

Pepea, which is supported by Oxfam Novib Impact Investments, aims to offer venture debt with a focus on mezzanine capital, a debt that may be converted into equity, to early-stage entrepreneurs in Kenya, Uganda, and Ethiopia.

These start-up companies will range in age from one to five years. They must be making money, yet they haven’t raised any money.

Goodwell Investments will oversee the fund’s activities, including the development of its portfolio. This will give them the structure and mechanisms they need to be funding-ready and raise their initial rounds. The initial investment would range between $100,000 and $500,000, with additional contributions from Goodwell’s funds of up to $1 million. In these three markets, Oxfam also runs a SME incubation program.

While the fund targets high-impact tech-enabled businesses, sectors in which priority will be placed include sustainable agriculture, energy, clean mobility, logistics, and waste management sectors, which produce basic goods and services that represent a huge proportion of household spending for lower-income communities. Pepea’s long-term plan is to improve the quality and affordability of these necessities.

Goodwell, established in 2007, has provided equity funding to over 20 businesses, such as Paga, MFS Africa, Sendy, Max.ng and Good nature agro, mainly targeting startups in finance, agriculture and mobility. Last year, it led a $50 million Series C round for e-commerce scaleup Copia Global. Subsequently, the impact investor launched its second fund, the UMunthu II worth $154 million, with a total of €310 million now under its management.

Oxfam Novib launched its first investment fund in 1996 and has since 2015 worked to provide SMEs with access to finance through its Impact SME Development (iSME) program. With the aim of furthering this goal, the organisation has established the Pepea fund, with the intent to help businesses achieve their maximum positive impact within their respective communities.

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