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 aims to support early-stage companies that have demonstrated product-market fit and are ready to scale. This initiative is expected to boost the growth of consumer businesses in Africa.
The fund will invest between $100,000 (Sh12.995 million) and $2 million (Sh259.9 million) in consumer businesses in food and beverage, beauty and personal care, particularly those with sustainable business models. It will also focus on consumer-facing retail platforms, including direct-to-consumer (D2C) brands and experiential consumer companies. This strategic investment is expected to drive growth in the African consumer market.
Beyond providing capital, Kenafric Ventures will offer founders access to the group's extensive manufacturing, distribution, and market expertise. With nearly four decades of experience since its establishment in 1987, Kenafric Group is well-positioned to support the growth of consumer businesses. The fund is managed by S2E Africa and was designed with support from FSD Africa.
The programme acknowledges 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 emphasized that building a successful consumer business goes beyond developing a good product. He noted that getting products accepted by the market and securing shelf space can be equally challenging. The company's ambition is to become the scaling partner of choice for Africa's most promising consumer businesses.
S2E Africa founder and CEO Pulkit Srivastava explained that the relationship can extend beyond a first investment. He said that for consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone. This partnership can grow into distribution, manufacturing, expansion into new markets, and potentially, a future acquisition.
Kenafric Ventures builds on a programme of work undertaken by FSD Africa with S2E Africa earlier this year. The fund is now open to applications from founders and co-investment opportunities across Africa. It also welcomes corporates and investors interested in co-investing or exploring the establishment of their own corporate venture programmes.
Key points
- The fund will invest between $100,000 and $2 million in early-stage companies.
- Kenafric Ventures will focus on consumer businesses in food and beverage, beauty and personal care.
- The programme aims to provide both financing and operational know-how to support the growth of consumer businesses in Africa.
