Amsterdam-based Goodwell Investments is an impact investment firm focused on inclusive growth in sectors providing basic goods & services and income generation opportunities to underserved communities in Africa and India.
Launch of a new fund
In a recent development, the firm has announced the launch of a €50M new fund – Goodwell V. This fund’s aim is to channel funds from private investors, family offices, and foundations into fast-growing, scalable small and medium-sized companies.
The new Fund is a multi-sector private equity fund focused on inclusive growth and sustainable development in Africa and the cornerstone feeder for a new institutional fund Goodwell plans to launch in the second half of this year.
How will the Goodwell V fund be utilised?
The fund will constitute a new portfolio of companies in different sectors in Africa. In a statement, the firm confirmed that a minimum of a third of the amount will be invested in financial inclusion, a quarter in agriculture, and remaining in mobility and other impact sectors such as education and health.
In addition, Goodwell V will also allocate follow-on funding to its existing portfolio companies such as Copia, MFS Africa, Good Nature Agro, Tomato Jos, and Nomanini. The firm’s local teams in Nigeria, Kenya, and South Africa have made more than 20 investments across Africa over the last five years.
Africa to become the fastest-growing economies?
Goodwell Investments believes that in recent times, a lot of passionate entrepreneurs have emerged in Africa who are looking to build scalable and innovative business models in order to solve their communities’ social and development challenges.
According to the firm, a growing youth population, together with rapid urbanisation and improving business environments across the continent, are contributing to an increase in purchasing power and rising household consumption which is predicted to reach $2.5T by 2030.
Besides, the investment in African startups also grew from $400M in 2015 to $2B in 2019, just 2 per cent of global private equity investment reaches the continent. In the current scenario, the funds committed to early and growth-stage startups in Africa is doubling every year; however, it is still merely scratching the surface of the growth potential.
Speaking on the development, Goodwell Director of Communications Nico Blaauw says, “We are convinced that businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa. Therefore, the path to inclusive growth in Africa is to support early-stage companies who are best positioned to solve critical challenges in their communities.”
Blaauw further adds, “Our portfolio companies are showing average revenue growth of over 50 per cent per annum. They have been able to withstand the perils of the pandemic by doing what they do best: providing access to essential products and services like food, transport, healthcare, and financial services. We are excited to continue the journey.”
A brief about Goodwell Investments
The firm invests in enterprises that are financially sustainable, scalable and that deliver investors financial returns accompanied by serious social impact. Founded in 2006, Goodwell Investments has teams in Kenya, Nigeria, South Africa and The Netherlands.
Goodwell Investments has already provided over €150M in funding to 35 inclusive businesses across Asia and Africa over the past 15 years.