GreenTec Capital Partners successfully closes funding round of more than 1 Million Euro

on 28 September 2017

Press Release

  • The capital raised will be used to scale up operations and increase the portfolio from 10 impactful African startups and SMEs to more than 50 by 2020
  • Strategic investors expand the company’s capacity to source, support, and co-invest

Frankfurt (Germany) 28 September 2017 – GreenTec Capital GmbH (GreenTec) is very pleased to announce that the company has successfully closed its second funding round, raising more than 1 million Euro from a consortium of professional investors, business angels, and impact investors. The capital raised will be used for scaling up operations and expanding the company’s capacity to source, support, and co-invest in impactful African startups. With this funding, GreenTec can develop its fast growing business even further and will not be dependent on additional capital injections – however, depending on strategic decisions to grow, new capital rounds may be considered in the future. The next important milestone will be the development of a fund to give more investors better access to the rising opportunities of the African market.

The pool of participants in this funding round was composed of professional impact investors, such as Frankfurt-based Finance in Motion GmbH, one of Germany’s leading Impact Investors with 1.7 billion Euro assets undermanagement, as well as private investors like Frank Dupuis, a German Entrepreneur with Fund-, Investment- and Asset Management firms in Germany and exposure in Sub-Saharan Africa as well as the active business angel investors Ulrich von der Linde, Thomas Knaack, and Dr. Matthias von Bismarck-Osten. As a part of this investment, GreenTec will relocate premises to Finance in Motion’s office building to promote further synergies in the impact investment community.

GreenTec CEO Erick Yong said: “The successful close of GreenTec’s funding round underlines the increasing awareness in Germany of themarket opportunities in Africa and the value of adding capacity building to our investments. After receiving the 2017 German Entrepreneurship Award for Development from the CDG and BMZ, the closing of this funding round is another tremendous boost for us and our portfolio companies present and future. After being very active in Anglophone African countries for the last three years, our strategy is now to expand into Francophone African markets. In preparation for this expansion, the company is discussing a venture partnership with well-established organizations, such as the French incubator “Jokkolabs.”

GreenTec CFO Thomas Festerling adds: “With our approach that prioritizes working hands-on with all of our portfolio companies to develop them into high-value businesses, we can deliver sustainable results for our investors. The existing portfolio of more than 10 startups is already of enormous strategic value for our further development and this funding round will allow us to increase the portfolio to more than 50 companies by 2020. In 2018, we will start developing an African focused impact investment fund, to facilitate funding for impactful African startups and to provide a diversified vehicle for investors interested in this particular segment.”

Finance in Motion Managing Director Florian Meister says: “GreenTec is a perfect fit for our portfolio as part of our strategy to invest in select impact businesses. We are convinced the company and its unique investment model will contribute significantly to the development of promising firms in Africa. We are also looking forward to welcoming the GreenTec team to our building to promote a constant exchange of ideas.”

About GreenTec

GreenTec Capital GmbH was founded in 2015 and focuses on promising and impactful African startups, applying a unique “results4equity” investment model. As Germany’s premier investor in African startups, GreenTec provides a unique low-cost acquisition model that turns under the radar startups into sustainable companies. In the last two years, GreenTec has developed a diversified and risk curated portfolio of more than 10 innovative African startups and SMEs. Today, GreenTec is active in the ITC, Energy, Water, and Agriculture sectors in Ghana, Kenya, Nigeria, Rwanda, Uganda. Several of the portfolio companies have receive media attention and earned several market recognitions and awards. Among them Farmcrowdy, an Agric-tech Platform from Nigeria (www.farmcrowdy.com) and ARED (www.a-r-e-d.com), a Rwanda based innovative energy & ICT company, which brings WIFI Connectivity to the streets of Africa. Recently, GreenTec has partnered with the Tony Elumelu Foundation in Nigeria to provide further mentoring and support to alumni of the Tony Elumelu Entrepreneurship Program. In 2017, GreenTec received the German Entrepreneurship Award for Development, an initiative of the Carl Duisberg Gesellschaft e. V. (CDG), the German Federal Ministry of Economic Cooperation and Development, and the German Society for International Cooperation (GIZ). For more information, please visit: www.greentec-capital.com

About Finance in Motion

Finance in Motion, one of the world’s leading impact investment advisors, focuses exclusively on for-profit funds promoting sustainable economic, social and environmental progress in low- and medium-income countries. With EUR 1.7 billion in assets under management, the company leverages development aid through public-private partnerships. In line with the goals of its funds, Finance inMotion promotes long-termrelationships and helps partners develop their business. Backed by 15 local offices spread through the more than 20 countries it serves, Finance in Motion advises the following development finance vehicles: the European Fund for Southeast Europe (EFSE), which finances micro-, small and medium enterprises (MSME finance); the Green for Growth Fund (GGF), which targets reduction of energy use and CO2 emissions; the SANAD Fund for MSME in the Middle East and North Africa; and the eco.business Fund, whose goal is the preservation of biodiversity and the sustainable use of natural resources. For more information, please visit www.finance-in-motion.com

About Frank Dupuis

Being a Real Estate entrepreneur since 1992, he has more than 25 years’ experience in real estate investments, he was responsible for and managed transactions with a volume significantly exceeding EUR 1 billion and has built Real Estate Operating Companies with more than EUR 10 billion AuM, spanning multiple Real Estate Asset Classes, Property Management and Real Estate Debt Investment Management. Dupuis’ Real Estate Investment- and Asset Managers (REIM) affiliations have offices in 9 countries with 12 offices.

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