Kenyan consumer goods manufacturer Kenafric Group has launched a Sh13 billion ($10 million) venture fund to invest in early-stage African consumer businesses, offering between (Sh13 million) $100,000 and Sh260 million ($2 million) to companies seeking to expand beyond their initial markets
The fund, known as Kenafric Ventures, will target businesses that have established product-market fit and are ready to scale, with investments complemented by access to the group's manufacturing, distribution and market expertise.
Kenafric Ventures will focus on food and beverages, beauty and personal care, and consumer-facing retail platforms.
The fund is managed by corporate venture studio S2E Africa and was designed with support from FSD Africa.
Kenafric Group chief executive Mikul Shah said the fund would use the company's experience in manufacturing and distributing consumer products to support businesses seeking to expand across African markets.
“Building a great product is only the beginning. We have spent nearly four decades learning how to get a product from a factory in Nairobi onto shelves in shops across East Africa. That knowledge can be as valuable to a young consumer business as the cheque itself,” Mr Shah said.
The group, which dates back to 1987, intends to offer founders operational support alongside financing, drawing on its experience in getting products into retail distribution networks.
S2E Africa founder and chief executive Pulkit Srivastava said corporate investment could give startups access to capabilities that would otherwise be difficult to build using funding alone.
“For consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone. A relationship that begins with an investment can grow into distribution, manufacturing, expansion into new markets and, potentially, a future acquisition,” Mr Srivastava said.
FSD Africa director of early-stage finance Juliet Munro said corporate investment could provide startups with both funding and operational expertise, arguing that companies should do more than support entrepreneurs through corporate social responsibility programmes.
“Corporate capital in Africa is abundant, but very little of it reaches startups. Where large companies do engage with entrepreneurs, it tends to be through CSR. That work matters, but investing in businesses built to last belongs alongside it,” Ms Munro said.
“Kenafric Ventures demonstrates the willingness of African corporate capital to provide both the financing and the operational know-how that will help the continent’s entrepreneurial talent to thrive. We hope many more African corporations follow,” she added.
