Novastar Ventures has closed its third fund, Africa People and Planet Fund III, securing $147 million to support early- to mid-stage startups across the continent. The final capital total falls slightly below the firm’s initial $200 million target but marks a 40 percent increase over its previous vehicle, which raised $108 million in 2020.
Expanding beyond its prior concentration in East and West Africa, the new fund will allocate capital on a pan-African basis, targeting scalable businesses wherever viable market conditions exist. The vehicle will primarily participate in pre-Series A through Series B rounds, with initial investments ranging from $1 million to $8 million. A portion of the capital has already been deployed to six portfolio companies: food delivery operators Chowdeck and Breadfast, electric mobility firms Greenwheels and ARC Ride, smartphone distributor MoPhones, and agritech company Sistema.bio.
The fund’s limited partner base combines returning investors with new strategic backers. Major commitments come from international development finance organizations including British International Investment, Norfund, Swedfund, Proparco and COFIDES. The vehicle also incorporates significant capital from Japanese financial and development institutions, including JICA, SBI Holdings, SMBC, Mitsubishi Corporation and Mitsui O.S.K. Lines. Novastar partner Brian Odhiambo noted that while the firm previously collaborated with Japanese investors on individual transactions, NVIII establishes a structured mechanism to systematically direct capital into African growth assets, fulfilling institutional demand for commercial and strategic expansion.
Investment mandates will prioritize enterprises addressing systemic challenges while generating measurable environmental and social impact, rather than limiting allocations to a single industry. Managing partner Andrew Carruthers stated that the fund builds on more than a decade of supporting companies aligned with long-term sustainable development objectives.
The fund launch aligns with broader investor reallocation toward energy, logistics and climate adaptation infrastructure across emerging markets. Novastar indicates that continued capital deployment through the current cycle will focus on scaling African ventures that integrate commercial viability with environmental resilience and social utility.
