New Delhi, Nov. 3 -- Novastar Ventures, a Kenya-based venture capital firm that backs early stage companies across the continent, has secured an investment commitment for its third investment vehicle that aims to back climate tech-led ventures.
The Nairobi-headquartered VC firm has got an investment commitment from Green Climate Fund, the world's largest multilateral climate finance body, for its latest outing--Novastar Ventures Africa People and Planet Fund III.
The Incheon City-headquartered GCF has invested $40 million (Rs 355 crore) in the Novastar Fund III, which has a target corpus of $200 million.
The Fund looks to back early and growth stage companies that promote a clean, inclusive, and sustainable development path for Africa. It will invest across three main themes-services that enable adaptation and resilience; clean technology for decarbonising economic growth; and innovative climate technology for natural resources.
The Fund NVIII has already invested in two companies: Breadfast, an Egyptian quick commerce grocery app; and Sistema.bio Inc, a prefabricated modular biodigester package that includes a full suite of biogas appliances and connections.
The Fund counts among its investors the British International Investment, the UK's development finance institution (DFI) and impact investor, which invested $10 million last year.
Novastar, launched in 2014, primarily invests in education, healthcare, agri-businesses, food, and water sectors which target low-income communities in Africa.
Its previous outing, Novastar Ventures Africa Fund II , a $105 million fund, was launched in 2020, which had catered to the broad objective of improving access to essential goods, services and economic opportunity for everyday consumers, producers, and suppliers in the continent. It deployed capital in at least 11 companies, including mPharma Data, Elephant Healthcare, software solutions provider Metro Africa Xpress, and cooling technology company Sure Chill, across sectors healthcare, education, housing, transportation, fintech, and energy.
Published by HT Digital Content Services with permission from VC Circle.