Kenafric launches $10M fund to back African consumer businesses

Kenafric Group, a Kenyan consumer goods company, has established Kenafric Ventures, a USD 10 million corporate venture fund dedicated to investing in African consumer businesses. The fund will provide capital ranging from USD 100,000 to USD 2 million for early-stage companies that have achieved product-market fit and are prepared for growth.

In addition to financial support, founders will have access to Kenafric's expertise in manufacturing, distribution, and market knowledge, gained over the company's 34-year history since 1987.

The fund, managed by S2E Africa with support from FSD Africa, will concentrate on consumer businesses within the food and beverage, beauty and personal care sectors, as well as consumer-facing retail platforms. This includes direct-to-consumer (D2C) brands, experiential consumer companies, and related categories. The fund recognizes that capital access is just one hurdle for scaling consumer businesses across African markets, with other challenges encompassing varying regulatory environments, infrastructure disparities, and intricate distribution channels.

Kenafric Ventures aims to serve as the scaling partner of choice for Africa's most promising consumer businesses. Mikul Shah, Kenafric Group's CEO, emphasized that while creating a great product is essential, the company's accumulated knowledge on delivering products from Nairobi factories to stores across East Africa holds equal significance.

Pulkit Srivastava, S2E Africa's Founder and CEO, added that the right corporate partner can provide capabilities difficult to replicate through capital alone. A partnership that begins with an investment could expand to distribution, manufacturing, new market entry, and potentially future acquisitions.

The fund's launch stems from a FSD Africa and S2E Africa initiative designed to explore ways to attract corporate capital into the Small and Growing Businesses (SGB) market. Juliet Munro, FSD Africa's Director of Early Stage Finance, highlighted that while corporate capital is abundant in Africa, most of it does not reach startups.

When large companies engage with entrepreneurs, it often occurs through corporate social responsibility (CSR) initiatives. However, investing in enduring businesses should be given equal importance. Kenafric Ventures demonstrates African corporations' readiness to offer both the financial backing and operational expertise needed to empower the continent's entrepreneurial talent. The company hopes to inspire additional African corporations to follow suit.