Tech Firm Founders Debut VC Fund for Africa’s Next Unicorns

The founders of companies like Klarna and Skype, among others, are rolling out a new $200 million venture capital fund to find new unicorns in Africa, a report says.

According to Klarna co-founder Niklas Adalberth told Financial Times on Sunday (Jan. 30) Africa was likely similar to Sweden in 2005, when Klarna was founded.

Back then, he said it was possible to get seed funding for companies, though there was also little capital to help them develop into unicorns, which are companies worth at least $1 billion.

Dozens of others are taking part — the leaders of Delivery Hero and Flutterwave are among them.

The report says the fund was started by the Norrsken Foundation set up by Adalberth. It’s looking to raise up to $2 billion. It will do so by inviting venture capital firms like Sequoia to co-invest.

On Monday (Jan. 31) the group is slated to offer its first $110 million close. And the company is in talks to get possible first investments, with 400 companies in South Africa, Kenya and Nigeria, among others, in their sights to talk to.

BNPL has been growing in popularity in recent times in Africa, with the service gaining traction with the digitally savvy and mostly underbanked populations looking for a new solution.

One example was the deal between BNPL player Payflex, based in South Africa, which was bought by Zip as that company continued its expansion.

Payflex was the first and largest BNPL player in the area – one of Africa’s biggest economies.

See more: BNPL Catches on With African Shoppers

The deal was an early tell that the continent, which has seen little activity from global BNPL players, is ready for more.

And recently, Kenya-based consumer credit and BNPL company Lipa Later has raised $12 million from international investors, looking to expand its presence there.

And Morocco-based B2B eCommerce and fintech platform Chari has announced the acquisition of a $100 million bridge round, as it plans to dabble in BNPL.