Impact investor Goodwell Investments and Oxfam Novib, a Dutch foundation and Oxfam International affiliate, have set up Pepea, a €20 million ($21.7 million) fund, to provide financing to early-stage startups in Kenya, Uganda and Ethiopia. The fund, created with the backing of Oxfam Novib Impact Investments, will provide venture debt with a focus on mezzanine finance, which is a debt that can be turned into equity.
Pepea will target early-stage businesses that have been in existence for one to five years, and are generating revenues but yet to raise capital. Goodwell Investments, which will manage the fund’s operations, and help develop its portfolio, told TechCrunch that part of the support to startups will include ensuring that they have the right “structures and systems” in place, to help them prepare and raise their first rounds.
The fund will invest in businesses in sustainable agriculture, energy, clean mobility, logistics and waste management sectors, which produce basic goods and…
