Nigerian impact investor Alitheia Capital and Goodwell Investments have exited Baobab Nigeria, selling their stake to its Paris-based microfinance parent company, Baobab Group.
Baobab offers microloans, digital payments and pay-as-you-go solar services in seven African countries, including the Democratic Republic of Congo, Senegal, Côte d’Ivoire, and Madagascar.
Its loans to micro, small and medium-sized businesses range from 1 million Naira to 150 million Naira ($650 to $100,000). Last month, UK private equity firm Apis Partners sold its stake in Baobab Group to Cairo-based Beltone Capital.
Early investors
Alitheia and Goodwell were among the first local backers of Baobab, which had no Nigerian investors on their board at the time. The impact investors first backed Baobab in 2012 via the Goodwell West Africa Microfinance Development Company fund.
Their jointly managed uMunthu fund subsequently invested in 2015 and, the companies say, achieved a 3x return with this exit. The partners’ hands-on assistance and strategic support helped Baobab expand to 38 branches across 16 states in Nigeria, reaching nearly 230,000 customers – 48% of whom are women – and dramatically increase the size of its loan book.
Underserved businesses
The two firms are fundraising for their second uMunthu fund, which reached a €57 million ($61.7 million) first close in 2023 from a pool of family offices, private and institutional investors. The fund aims to raise €150 million to back affordable housing, healthcare, food, transportation and consumer goods and services for underserved communities.
Its portfolio includes Zambian agritech Good Nature Agro, Mozambique’s aquaculture company Chicoa Fish Farm and South African online upskilling platform for teachers, Instill Education.
