In a move that aims to strengthen the African fintech ecosystem, FSDAi Nyala Facility has invested US$ 1 million into First Circle Capital Africa Fund I. This significant financial injection will bolster First Circle Capital’s mission to back early-stage fintech companies across the continent. First Circle Capital is a female-led venture capital firm focusing on financial technology and innovation. The partnership marks a critical milestone in the fund's growth and sets the stage for further institutional investment.

FSDAi Nyala Facility’s Strategic Investment

The FSDAi Nyala Facility, established by FSD Africa Investments, is designed to support emerging local capital providers across Africa. Its investment in First Circle Capital signals confidence in the fund’s leadership and its specialized focus on fintech innovation. Anne-Marie Chidzero, FSDAi’s Chief Investment Officer, expressed enthusiasm about the partnership, citing First Circle Capital's remarkable track record and strategic focus on the fintech sector. She emphasized that the investment aims to catalyze the involvement of more institutional Limited Partners (LPs) in the fund.

The Rise of Fintech in Africa

First Circle Capital’s investment strategy aligns with the rapid growth of fintech across Africa. According to recent reports from BCG and QED, Africa is currently the fastest-growing fintech region globally. Revenues from fintech are expected to increase 13-fold by 2030, driven by the sector’s ability to address financial exclusion for individuals, small and medium enterprises (SMEs), and the continent’s youthful population. The firm’s founders believe that expanding access to financial services is critical for both economic development and social resilience in Africa. The fund’s focus includes investments in financial infrastructure, insurtech, and climate-focused fintech, areas that promise to provide much-needed solutions for underserved markets.

First Circle Capital’s Investment Focus

Founded by fintech veterans Selma Ribica and Agnes Aistleitner Kisuule, First Circle Capital invests in Africa’s most promising early-stage fintech companies. The fund prioritizes investments in areas such as insurtech, fintech SaaS, regtech, financial infrastructure, and alternative lending models. With a portfolio of 13 investments spread across seven African markets, First Circle is leveraging its partners' deep networks and extensive expertise to build the next generation of financial services in Africa.

Ribica, a former M-Pesa executive and fintech investor, and Kisuule, an emerging markets entrepreneur, bring a wealth of experience to the firm. Ribica’s angel investment portfolio has already achieved a 33x multiple on invested capital (MOIC) in early-stage fintech, including notable companies such as Qonto, Tabeo, and Expensya. Kisuule, based in Kampala, has previously built successful businesses in Jordan, Ukraine, and Uganda. The duo's operational knowledge and entrepreneurial backgrounds are key strengths in supporting the growth of their portfolio companies.

The Importance of Fintech Beyond Payments

While much of the investment in African fintech has historically been focused on payments, First Circle Capital’s strategy targets the next layer of financial services. By focusing on products that enhance financial inclusion for individuals and SMEs, the firm is positioning itself to lead the market in expanding access to a broader range of financial products. According to the co-founders, fintech innovation offers the potential to resolve critical financial access issues, particularly in key African markets such as South Africa, Nigeria, Egypt, and Kenya.

First Circle Capital’s Partners and Offices

With offices in Casablanca and Kampala, First Circle Capital is well-positioned to navigate Africa’s diverse and complex markets. The firm is backed not only by FSDAi Nyala Facility but also by other key partners, including the Axian Group and a roster of serial entrepreneurs and investors. This support network, coupled with the firm’s deep expertise and strategic focus, provides a strong foundation for First Circle Capital to scale its impact across the continent.

The US$ 1 million investment from FSDAi Nyala Facility marks a pivotal moment in the growth of First Circle Capital and the African fintech ecosystem. As the fintech sector continues to grow at an unprecedented rate, First Circle Capital’s targeted investments in areas such as financial infrastructure, insurtech, and alternative lending models are poised to drive innovation and expand access to financial services across Africa. With a leadership team deeply embedded in the fintech space, First Circle Capital is well-equipped to support the next wave of African fintech entrepreneurs, enhancing economic development and social resilience across the continent.