The money will target businesses in food and drinks, beauty and personal care, as well as retail platforms that sell products directly to consumers Kenafric Group executive director Chehar Shah, S2E Africa founder Pulkit Srivastava and CEO at Kenafric Group’s warehouse Mikul Shah.
/HANDOUT Kenyan consumer goods manufacturer Kenafric Group has launched a $10 million (Sh1.3 billion) fund to help young African businesses expand their operations and reach more customers. The fund, known as Kenafric Ventures, will invest between $100,000 (about Sh12.9 million) and $2 million (about Sh258 million) in businesses that have already attracted customers and are ready to grow.
The money will target businesses in food and drinks, beauty and personal care, as well as retail platforms that sell products directly to consumers. The initiative comes as consumer businesses face challenges in raising growth capital and navigating fragmented distribution networks, varying regulatory requirements and uneven infrastructure across the continent.
Kenafric Ventures will target food and beverage, beauty and personal care businesses, as well as consumer-facing retail platforms, direct-to-consumer brands and experiential consumer businesses with sustainable business models. The fund is managed by S2E Africa, with support from FSD Africa, a financial sector development organisation.
Kenafric Group chief executive Mikul Shah said the company intends to use its nearly four decades of experience in manufacturing and distribution to help young businesses overcome barriers to growth. "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," said Shah.
"That knowledge can be as valuable to a young consumer business as the cheque itself. Our ambition is to become the scaling partner of choice for Africa's most promising consumer businesses." The fund will also allow startups to tap into corporate partnerships that could support manufacturing, distribution and entry into new markets, with the possibility of future acquisitions.