African investment company Convergence Partners has bought a strategic, minority stake in VC firm Venture Garden Nigeria (VGN) for US$20 million to allow VGN to further grow its operations in Nigeria and the rest of the region.
Founded in 2006 and run by Andile Ngcaba, Convergence Partners has gained a reputation recently for investing in infrastructure projects across Africa, but is now moving into other verticals.
VGN is the holding company of a group of technology startups providing innovative, data-driven, end-to-end technology platforms, such as EduTech and SureGifts, and will use its new equity capital to drive its expansion.
“Innovative financial technology is a key component of the African development story, as it enhances efficiency and governance, and enables service provision to the broader population. With its high calibre and energised management team, and leading position in the fast growing markets in which the company operates, VGN is a very exciting investment opportunity for us,” said Brandon Doyle, chief executive officer (CEO) of Convergence Partners.
Bunmi Akinyemiju, CEO of VGN, said the company believed the fintech space was a catalyst for tech-driven transformation in Africa, and that he was pleased to have a specialist investor like Convergence Partners on board.
“The culture of Convergence Partners is one that aligns well with ours and we are confident that the professionalism, commitment to excellence and fearless approach to disruptive innovation that we strive for, is what they look for in the teams they back,” he said.
“With the support of Convergence Partners, we believe we can accelerate the execution of our strategy, and achieve a wider customer reach.”