Nigerian incubation space, Co-Creation Hub (CcHUB) is in the process of raising $60 million for its investment arm, Growth Capital (GC) Fund to invest in startups across Africa.
According to reports, Chief Executive Officer (CEO) of CcHUB, Bosun Tijani, says that the fundraising process will be within the next 12 months.
Kickstarted in 2016 in partnership with Omidyar Network, Bank of Industry and Venture Garden Group, CcHub’s Growth Capital is a social innovation fund. It supports high potential, early-stage businesses building next generation infrastructure using technology.
Upon its launch, the initial mandate of the fund is to invest in Nigerian startups solving local infrastructural problems. But with its recent expansion, the fund’s offerings will definitely be extended to other markets.
In February, the startup expanded to Rwanda with the launch of its Design Lab which is said to be the hub’s internal Research and Development (R&D) unit. And just last week, the space announced the acquisition of Nairobi based tech incubator, iHub, sealing its position as Africa’s leading Hub.
As a result of these, CcHUB now has access to the pipeline in Nigeria, Kenya and Rwanda, and therefore has to expand its investment scope.
Since its launch, the Growth Capital has made investments in six Nigerian startups. In 2018, the startup made a N27.1 million ($75,000) investment in healthtech startup, LifeBank, followed by a N36 million ($100,000) investment in Riby finance in March 2018. The startup has also made a N54.2 ($150,000) in Delivery Science and a N21.6 million ($60,000) in Edves 2018.
The startup also made undisclosed investments in Nigerian Furniture Brand startup, Taeillo, and most recently drug procurement platform, Drugstoc.
When the GC Fund was launched it had an initial target of N1 billion to be raised within 2 years. But so far, it has only raised N280 million which is 19% of its planned goal and has invested N228 million of the raised funds.
Now with an expanded terrain to look at, the startup now has its eyes on raising $60 million (N21 billion) within the next 12 months, for its next round of investments.
Meeting this target presents a chance for startups in CcHUB’s markets, including other African countries, to be beneficiaries of the enlarged Growth Capital fund.