Oui Capital's Successful Fund Return with Moniepoint Unicorn Exit

Oui Capital Returns Debut Fund Following Moniepoint Exit

During a recent meeting with its limited partners, early-stage African investment firm Oui Capital announced the full return of its initial $4 million fund. This achievement follows the partial sale of shares in Moniepoint, a leading business banking platform.

A Successful Investment in African Fintech

Moniepoint has proven to be a remarkably successful investment for Oui Capital, which was founded five years ago. The firm initially invested $150,000 in the Nigeria-based company, a strategic early move that ultimately yielded an $8 million return.

This return was sufficient to fully repay the fund’s initial capital. Last October, when Moniepoint secured $110 million in Series C funding at a $1 billion valuation – led by Development Partners International – Oui Capital capitalized on the opportunity to sell a portion of its holdings.

Rare Feat for a Young VC Firm

Achieving a full fund return is an uncommon accomplishment for nascent venture capital firms, particularly within Africa’s venture capital landscape. It highlights the potential for substantial gains from early-stage investments, especially within the fintech sector on the continent.

Oui Capital now joins other pan-African investors, including CRE VC and 4DX Ventures, who have successfully returned their first funds through investments in unicorns like Andela and Flutterwave.

Moniepoint’s Evolution and Oui Capital’s Early Support

In 2019, when Oui Capital first evaluated the company – then known as TeamApt – it wasn’t widely recognized. The organization was primarily focused on developing financial products and software solutions for its own use and for banking institutions.

Founded by Olu Oyinsan and Francesco Andreoli, Oui Capital was among the first investors to recognize Moniepoint’s potential. They also provided crucial support during the company’s transition to a business banking and payments platform, which has since become Nigeria’s largest merchant acquirer.

Tosin Eniolorunda, co-founder and CEO of Moniepoint, acknowledged Oui Capital’s consistent support, stating in a 2021 video: “They have been with us through the stages, from seeking product-market fit to getting to production.”

He further emphasized their advisory role, strategic discussions, governance guidance, and assistance with investment campaigns, including narrative development and positioning.

Exits in Africa’s Tech Ecosystem

Exits within Africa’s technology sector remain relatively infrequent. According to The Big Deal, only 143 out of 2,971 venture deals completed since 2019 have resulted in an exit.

The majority of startups are still in their early or growth phases, lacking the maturity required for substantial exits. Unlike more developed markets with established M&A and IPO avenues, Africa’s tech ecosystem is still evolving, limiting the number of exit-ready companies.

Venture Investment Timelines and Fund Size

Venture investments generally require five to ten years to mature, meaning many African-focused VC firms are still awaiting returns. Oui Capital’s successful return took five years.

When the firm initially invested in Moniepoint’s seed round, the company was valued at $12.5 million, as detailed in an investor report reviewed by TechCrunch.

Smaller funds are often easier to return due to their manageable size, a trend supported by data from Cambridge Associates.

Portfolio Construction and Future Plans

Olu Oyinsan attributes his fund’s success to its strategic portfolio construction. He explains, “It’s not just about fund size — it’s about what you invest in, your entry price, how much equity you own, how much you invest, and when you decide to exit.”

Oui Capital’s portfolio also includes Duplo, a platform digitizing payment flows for African B2B enterprises; Maad, a B2B e-commerce platform for fast-moving consumer goods; and Matta, a B2B marketplace for chemicals, all originating from its first fund, Mentors Fund 1.

The investor currently manages 22 startups across two funds, providing seed-stage funding of up to $400,000 to startups throughout Africa.

In 2022, Oui Capital launched its second fund, Mentors Fund 2. While initially aiming for $30 million, it ultimately closed at $12 million. Oyinsan also indicated that, given the firm’s current strong position, a third fund may be raised later this year.