How African VC firm Oui Capital raised its first funding by exiting unicorn Moniepoint

At a recent investor meeting, early-stage African investor Oui Capital told its limited partners that it had raised $4 million in its debut fund after selling some shares in business banking platform Moniepoint. Africa’s fintech unicorn has so far proven to be a good investment for five-year-old Oui Capital. At that time the first fund was opened, investing $ 150,000 in a Nigerian-based company, the initial bet that has already started to generate $ 8 million return-enough to repay the fund. Specifically, last October, when Moniepoint raised $ 110 million in funding in a $ 1 billion valuation in the Series C round led by Development Partners International, Oui Capital sold some shares to the deal; now, with the repaid fund, any future returns will be pure profit for its investors. This is a rare feat for young VC firms—many around the world fail to raise their first funding—and even rarer in the African venture ecosystem. However, it underscores how profitable some early-stage bets, especially in fintech, can be on the continent. Oui Capital joins other pan-African investors like CRE VC and 4DX Ventures that have raised their first funds after backing other unicorns, such as Andela and Flutterwave, according to two people familiar with investor transactions 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 that time, the company mainly developed financial products and software for itself and banks. Oui Capital, founded by Olu Oyinsan and Francesco Andreoli, was among the earliest investors and also one of the few to support the pivot of the outfit for Moniepoint, a business bank and payment platform that has since become the largest merchant acquirer in Nigeria. “They have been with us at every stage, from finding the right product-market to production,” said Tosin Enioluwadara, founder and CEO of Moniepoint, about Oui Capital in a 2021 video. “Olu [managing partner at Oui Capital] has been helpful in advice; we talk through strategy, governance, and key issues that affect the company. They also help with our investment campaigns, from introducing potential investors to sometimes just thinking about our narrative and positioning… Big Deal. Most startups are still in their early or growth stages – far from the maturity required for a significant exit. Unlike developed markets with strong M&A and IPO options, Africa’s tech ecosystem is still evolving, resulting in 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, the wait was five years. When the company joined Moniepoint in its seed round, the company was valued at $12.5 million, as revealed in an investor report seen by TechCrunch. Anecdotally, smaller funds have easier returns because of their size. Data from Cambridge Associates, which builds and manages investment portfolios for institutional investors, adds to this trend. But more importantly, Oyinsan attributes the fund’s portfolio construction to the company’s appeal so far. “It’s not just about the size of the fund—it’s about what you invest in, your entry price, how much equity you have, how much you invest, and when you want to exit,” he told TechCrunch. Other startups in Oui Capital’s portfolio include Duplo, which digitizes payment flows for African B2B companies; Maad, a B2B e-commerce platform for fast-moving consumer goods; and Matta, a B2B marketplace for chemicals, from the first fund, Mentors Fund 1. Investors, with 22 startups in two funds, wrote checks of up to $400,000 for seed startups in Africa. In 2022, Oui Capital launched a second fund, Mentors Fund 2. While the early-stage company initially targeted $30 million, it closed at $12 million, according to Oyinsan. He also indicated that the fund has no plans to raise funds in a rush due to its strong position, possibly raising a third fund this year.

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