This investment could be the boost the West African tech scene needs to become a thriving startup hub.
Pan-African investment management firm Convergence Partners has announced an investment of $20 million for a minority stake in Venture Garden Nigeria (VGN), a tech investment holding company operating in the West African country.
VGN is dedicated to support companies that provide innovative, data-driven, end-to-end technology platforms. Its portfolio currently consists of education company EduTech, software developer Splashers Technologies and gifting platform SureGifts, among many others.
Founded in 2006, Convergence Partners is an investment management firm focused on the telecommunications, media and technology sector in Africa. The firm has played leading roles in the undersea fibre cable, SEACOM; the first ever African private sector communications satellite, New Dawn; and FibreCo Telecommunications, which is the first open access national fibre network in South Africa.
The capital injection will enable VGN to accelerate its growth plans in Nigeria and across the West African region.
In a press release, Convergence Partners CEO Brandon Doyle pointed out that fintech is a key component of the African development story by enhancing efficiency and governance. “With its high calibre and energised management team, and leading position in the fast growing markets in which the company operates, VGN is a very exciting investment opportunity for us,” he said.
VGN CEO Bunmi Akinyemiju adds that the group is pleased to have a Convergence Partners on board that shares the vision of technology as a key enabler and driver of economic development. “With the support of Convergence Partners, we believe we can accelerate the execution of our strategy, and achieve a wider customer reach,” Akinyemiju said.
Convergence Partners recently announced that its Convergence Partners Communication Infrastructure Fund has over $200 million in capital. While the firm operates all over Africa, it recently opened an office in Lagos, Nigeria to enhance management and monitoring of its portfolio companies within the region.
This post was originally published on Ventureburn.
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