Constant Ventures is raising a $100 million fund to invest in tech-based companies in West Africa as it seeks to expand in the region.
The Nigerian-based venture capital firm will start the fund within the next six months by investing its own money into the pool while seeking additional equity contribution from partners over the next 12 months, according to the company. The fund targets start-ups in technology-based services including health, education and financial inclusion in West Africa.
“We believe that digital technology is going to have a transformative effect on growth and wealth in Africa and it’s going to empower millions of people by providing them access to finance and access to basic infrastructure,” Ike Echeruo, chief executive officer for Constant Capital Group, the parent company, said in a virtual interview. The company expects development-finance institutions, institutional investors and high net-worth individuals as co-investors in the $100 million fund, he said.
Constant Capital was co-founded by Echeruo in 2006 and it later expanded to Ghana. It had in the past invested in companies including Appzone, a payments-services provider, and Heala, a health-technology firm and is looking to do more, according to Echeruo.
Last month, Norrsken22, an Africa-focused fund said it expects to raise $200 million or more this year to invest in fintech, taking advantage of the continent’s fast-growing startup sector, which raised a record $5 billion in 2021. “We invest in very early stages in founders that are doing business that we think will win,” as well as in firms that plan to grow, Echeruo said, dismissing concerns about excessive valuations in the sector.