Oxfam Novib, Goodwell Investment create US$21 million startup fund

Impact investor Goodwell Investments and Dutch foundation Oxfam Novib have teamed up to launch a new fund called Pepea. It’s worth €20 million ($21.7 million) and is targeted at early-stage startups that have been around for one to five years and are making some money, but haven’t gotten any funding yet.

The catch is, these startups have to be located in East African countries like Kenya, Uganda, and Ethiopia. That’s where Oxfam and Goodwell are already making a difference through financing SMEs and impact investments.

TechCrunch reports that Pepea will provide an initial cheque of between $100,000 and $500,000, and follow-on investments of up to $1 million, from Goodwell’s funds. This will be invested in the startups as venture debt that can turn into equity (a.k.a. mezzanine).

The fund is keen on making necessities more affordable for people in lower-income communities. So it will invest in businesses that produce the basic necessities like food and transport, which they spend most of their income on.

This investment will extend to sectors such as sustainable agriculture, energy, clean mobility, logistics, and waste management.

The Pepea Fund is another addition to the other funds through which impact investor Goodwell Investment has invested in companies like Paga, MFS Africa, Sendy, Max.ng and Good Nature Agro. It is also a means for Oxfam Novib to continue financing SMEs, especially those that are women-owned.