The FSDAi Nyala Facility, created by FSD Africa Investments to support new local investors, is putting $1m into Africa-focused fintech and venture capital fund First Circle Capital.
First Circle invests in Africa’s most promising early-stage financial technology companies. It leverages the partners’ industry network and expertise with an angel investment track record at 33x MOIC. It is run by former entrepreneurs and fintech executives Selma Ribica and Agnes Aistleitner Kisuule.
First Circle focuses on insurtechs, financial infrastructure and climate fintechs. Other areas the fund invests in are fintech Software as a Service (SAAS), Reg Tech and Alternative Lending Model firms. The team has built a portfolio of 13 investments so far in these areas, across seven African markets.
Announcing FSDAi Nyala Facility’s investment, FSDAi’s chief investment officer, Anne-Marie Chidzero said: “We are thrilled to back this promising GP team of remarkable female investors.
“First Circle stands out in the market as a thesis-led specialised fund with great depth of expertise and strategy in the fintech sector. We believe that FSDAi Nyala Facility’s backing will catalyse more institutional LPs into First Circle Capital Africa Fund I.”
According to BCG and the recent QED report, Africa is the fastest-growing fintech region in the world. It is expected to grow its revenues by a staggering 13x by 2030.
Fintech is well positioned to resolve financial services access issues in Africa. The continent has an excluded and under-served population and SMEs. It has to address its young population’s needs.
Most Africans’ first interaction with the financial services sector may be through their smartphones. BCG projects a fintech revenue CAGR of 32% until 2030. South Africa, Nigeria, Egypt, and Kenya will be the key markets.
Boosting economic development
Selma Ribica and Agnes Kisuule, co-founding partners of First Circle Capital commented: “Expanding access, availability, and stability of financial services for African consumers as well as SMEs is critical for economic development and social resilience.
“The majority of fintech funding to date has gone into payments. Hence, investing in the next layer of financial services poses a significant opportunity.
“We are investing in Africa’s most innovative entrepreneurs building the next layer of financial products. They will enable and expand access to financial services for individuals and SMEs across Africa.
“We are excited to have FSDAi Nyala Facility as our first institutional partner, especially given FSD Africa’s track record in deepening access to financial services on the continent.”
The fund has offices in Kampala and Casablanca. With their team, the managers are leveraging their operational know-how as successful operators. They are also leveraging their track record in the industry and strong network across Africa and internationally.
FSDAi Nyala Facility, Axian Group, and several serial entrepreneurs and investors support First Circle Africa Fund I.
