Editor’s note: African-Startups is a sister publication of EU-Startups, bringing trusted coverage of startups, venture capital, and innovation across Africa.
Kenyan consumer goods company Kenafric Group has launched Kenafric Ventures, a $10 million corporate venture fund for African consumer businesses. It is now open to founders and co-investors across Africa.
The fund will write cheques of $100,000 to $2 million to early-stage companies that have shown product-market fit and are ready to grow. It is managed by S2E Africa and was designed with support from FSD Africa. Founders will also get access to the manufacturing, distribution, and market knowledge Kenafric has built since 1987.
“Building a great product is only the beginning. We have spent nearly four decades learning how to get a product from a factory in Nairobi onto shelves in shops across East Africa. That knowledge can be as valuable to a young consumer business as the cheque itself. Our ambition is to become the scaling partner of choice for Africa’s most promising consumer businesses,” said Mikul Shah, CEO, Kenafric Group.
Founded in 1987 and led by Mikul Shah, Kenafric Group makes and sells confectionery, food, beverages, footwear and stationery. It started in Kenya and now sells its brands across African markets.
S2E Africa is a corporate venture platform that helps established companies find, structure and carry out strategic investments across Africa.
The $10 million will go into companies in food and beverage, and beauty and personal care, especially those with a sustainable business model.
It will also back consumer-facing retail platforms, including direct-to-consumer (D2C) brands, experiential consumer companies and related categories.
The fund is built around the idea that money is only one of the problems for consumer startups trying to scale in Africa. Others include different regulations from country to country, uneven infrastructure, and complex distribution channels. Selected companies will be able to use Kenafric’s capabilities and networks alongside the investment.
“For consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone. A relationship that begins with an investment can grow into distribution, manufacturing, expansion into new markets and, potentially, a future acquisition,” said Pulkit Srivastava, Founder and CEO, S2E Africa.
FSD Africa is a development agency that works with governments, regulators and financial institutions in 30 countries to strengthen markets and mobilise capital. It is supported by the UK Government and other partners, and invests through its arm, FSD Africa Investments.
The announcement comes a couple of weeks after partnering with Kenyan insurer Jubilee Group and seven other InsurTech startups to develop and test affordable insurance for people who lack formal cover.
Last month, FSD Africa launched the Manager Finance Facility (MFF), a new initiative aimed at strengthening Africa’s emerging generation of alternative local capital providers.
The Manager Finance Facility (MFF) is being launched with support from FMO, the Dutch entrepreneurial development bank, and the UK Government’s Foreign, Commonwealth and Development Office (FCDO) Nigeria.
“Corporate capital in Africa is abundant, but very little of it reaches startups. Where large companies do engage with entrepreneurs, it tends to be through CSR. That work matters, but investing in businesses built to last belongs alongside it. Kenafric Ventures demonstrates the willingness of African corporate capital to provide both the financing and the operational know-how that will help the continent’s entrepreneurial talent to thrive. We hope many more African corporations follow,” said Juliet Munro, Director of Early Stage Finance, FSD Africa.
