Sh1.2b fund to scale African consumer businesses unveiled

Founder, S2E Africa Pulkit Srivastava, Kenafric Group Executive Director Chehar Shah and Kenafric Group CEO Mikul Shah during a visit to Kenafric Group’s warehouse. [Nanjinia Wamuswa, Standard]

Kenyan consumer goods manufacturer Kenafric Group  has launched Kenafric Ventures, a $10 million (Sh1.2 billion) corporate venture fund targeting promising consumer businesses across Africa.

The fund will invest between $100,000 (Sh12.995 million) and $2 million (Sh259.9 million) in early-stage companies that have demonstrated product-market fit and are ready to scale.

Beyond providing capital, Kenafric Ventures will offer founders access to the group's extensive manufacturing, distribution and market expertise, built over nearly four decades since its establishment in 1987.

The fund is managed by S2E Africa and was designed with support from FSD Africa.

Kenafric Ventures will focus on consumer businesses in food and beverage, beauty and personal care, particularly those with sustainable business models, as well as consumer-facing retail platforms.

These include direct-to-consumer (D2C) brands, experiential consumer companies and adjacent categories. The programme is based on the premise that access to capital is only one of the challenges facing consumer businesses seeking to scale across African markets.

Other challenges include navigating diverse regulatory regimes, uneven infrastructure and complex distribution channels. Alongside investment, selected companies will be able to access relevant capabilities and networks across the Kenafric ecosystem.

Kenafric Group CEO Mikul Shah acknowledged that building a successful consumer business goes beyond developing a good product, noting that getting products accepted by the market and securing shelf space can be equally challenging.

"Building a great product is only the beginning. We have spent nearly four decades learning how to move a product from a Nairobi factory to shelves across East Africa. 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," he said.

S2E Africa founder and CEO Pulkit Srivastava explained that the relationship can extend beyond a first investment.

“For consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone. A relationship that begins with an investment can grow into distribution, manufacturing, expansion into new markets and, potentially, a future acquisition,” he said.

Kenafric Ventures builds on a programme of work undertaken by FSD Africa with S2E Africa earlier this year designed to test ways to attract corporate capital into the Small and Growing Businesses (SGB) market.

Early-Stage Finance at FSD Africa Director Juliet Munro said corporate capital in Africa is abundant, but very little of it reaches startups.

“Where large companies do engage with entrepreneurs, it tends to be through CSR. That work matters, but investing in businesses built to last belongs alongside it. Kenafric Ventures demonstrates the willingness of African corporate capital to provide both the financing and the operational know-how that will help the continent's entrepreneurial talent to thrive. We hope many more African corporations follow," Munro said.

Kenafric Ventures is now open to applications from founders and co-investment opportunities across Africa.

The fund also welcomes corporates and investors interested in co-investing or exploring the establishment of their own corporate venture programmes.