VC4Africa listed enterprise payments platform provider Nomanini, based in South Africa, has raised a new round of funding from the impact investment firm Goodwell Investments of VC4Africa member Wim van der Beek. Congratulations!
In October 2012 we reported about the series-A funding Nomanini secured from eVA Fund and Esther Dyson. February 2014 Nomanini went on securing series B funding from Rockbridge Investment Limited, bringing the startup’s total raised capital to USD 1.9 million. August 2014 the company got a USD 450K funding boost from South Africa’s tech venture capital fund IDC. Nomanini now reports the new investment from Goodwell brings their total raised capital to ‘over USD 2.3 million’.
Goodwell’s new investment in Nomanini is the second on-the-ground investment made by Goodwell Investments in South Africa from its EUR 50 million uMunthu fund, which is targeting startups and high growth companies in the financial inclusion and fintech space in Sub-Saharan Africa.
Nomanini’s platform enables transactions in the cash-based informal retail sector, enabling enterprise prepaid distributors to bolster their distribution channels, add to their portfolio of transaction services, increase their access to informal market consumers and efficiently monitor micropayments and services via a scalable cloud-based platform. The company scaled enterprise partnerships in Ghana and Mozambique. Nomanini’s Pan-African partnerships have enabled thousands of merchants to supplement their income, processing over 800.000 transactions monthly.
Wim van der Beek, founder and managing partner at Goodwell Investments, said the impact investing firm is targeting startups at the early growth stage promoting financial inclusion by utilising technology, hence its interest in Nomanini. “We believe Nomanini could become a global provider of a range of services for the informal retail market. It provides a solution that can be applied in all “majority markets”, though in Africa alone the sheer size of the addressable market is attractive,” he said. “Nomanini’s micro-payment platform is flexible and can grow with its clients to include not only airtime but also insurance, energy and other services to improve access to affordable products and services for low income households.”
CEO of Nomanini, Vahid Monadjem, is delighted that the company has closed an investment with Goodwell. “The funds and relationship with Goodwell will be used to build towards a larger funding round to fuel the company’s explosive growth,” he said.
Goodwell currently has close to EUR100 million assets under management, with 18 portfolio companies in Africa and India that serve more than 9 million clients. The firm has high growth ambitions, and is aiming to significantly expand its footprint and assets under management in Africa in the next five years.
With uMunthu, the company is looking to raise EUR 50 million from high net worth individuals, family offices, institutional investors and development institutions, and will make individual investments of between EUR 250,000 and EUR 5 million in companies improving financial inclusion in Africa. Van der Beek said Goodwell was an active investor in its portfolio companies.
“We are not a traditional investor sitting in an office. We have a structure that is based on local teams that know local customs. That allows us to select the best companies and provide hands-on support to their management. In the early growth stages we are highly involved with the team and in key processes,” he said.
Though it has a different way of looking at the marketplace, Goodwell works in the same way as traditional VC funds. “Our criteria and processes are the same as with regular private equity and venture capital. Our track record demonstrates that. Our returns are excellent, better than many other VC funds,” Van der Beek said. At the same time, he said focus remains on impact: “We believe that we can contribute to a better world by offering people better economic opportunities. That drives our business”.
See Nomanini’s VC4Africa venture profile for more info about the company.