- CardinalStone raised $64 million to support small and medium businesses in Nigeria and Ghana
- The Nigerian funder plans to finance six to seven SMEs operating in agriculture, consumer goods, healthcare, others
- iFitness and AppZone are two companies that the Nigerian investors have financially supported
CardinalStone Capital Advisers has raised $64 million from more than five investors to support small and medium-scale businesses in Nigeria and Ghana. The fund was raised through its CardinalStone Capital Advisers Growth Fund LP.
Sectors CardinalStone will invest in
Small and medium businesses selected will receive $5 million to $10 million in exchange for equity, as the tradition of CardinalStone. The capital will be disbursed into consumer goods, education, services, industrials, healthcare, agribusiness, and financial services.
Its investment portfolio includes iFitness Center Limited and AppZone Group Limited. With the new funds, CardinalStone will invest in six to seven companies in the next two years.
Participating investors in CardinalStone fundraising
Investors that participated in the fundraising are high-net-worth individuals, CDC Group of UK government, Kuramo Capital, FMO – Dutch Entrepreneurial Development Bank.
Other investors were World Bank's International Finance Corporation, and the Nigerian Sovereign Investment Authority (NSIA). This is not the second fundraising by the company as it initially sought funds between December 2018 and September 2020.
What you need to know
The co-founder of CardinalStone, Femi Ogunjimi, appreciated investors who participated in the fundraising despite the challenging environment.
His partner, CardinalStone, Yomi Jemibewon, said previous investment in iFitness had yielded results, as well as that of AppZone. He stated that the founders of both companies have the drive to disrupt their respective markets.
The managing director added that the focus of the funder is now on the next business to build across the target markets.
Meanwhile, Legit.ng, had earlier reported that Access Bank is close to acquiring a South African lender, Grobank. The value of the deal between the Nigerian creditor and the foreign firm is placed at $26.72 million.
The transaction comes months after the Nigerian bank acquired two banks in Zambia and Kenya. Access Bank also plans to acquire a bank in Mozambique.