FSDAi Nyala Facility BV, an initiative established by FSD Africa Investments (FSDAi), has announced a $1 million investment into Africa-based venture capital firm, First Circle Capital, to support its Africa Fund I. This move is aimed at empowering early-stage fintech companies across the continent, with a specific focus on fostering innovation in financial technology.

First Circle Capital, co-founded by seasoned entrepreneurs and fintech executives, Selma Ribica and Agnes Aistleitner Kisuule, is targeting investments in insurtech, financial infrastructure, and climate-focused fintechs. With the partners’ deep industry expertise and network, the fund has already made 13 investments across seven African markets, spanning sectors like fintech Software as a Service (SaaS), regulatory technology (regtech), and alternative lending models.

In recent years, Africa has emerged as a hotbed of fintech innovation. According to reports from Boston Consulting Group (BCG) and QED, Africa is currently the fastest-growing fintech region globally, with revenues projected to increase 13-fold by 2030. Fintech solutions are seen as a crucial answer to the continent’s long-standing challenges around financial inclusion, with most Africans likely to experience their first interaction with financial services through their mobile phones.

Commenting on the investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, expressed her enthusiasm for the partnership. “We are thrilled to back this promising GP [General Partner] team of remarkable female investors. First Circle stands out as a thesis-led, specialized fund with exceptional expertise in the fintech sector. We believe our support will catalyze further institutional LP [limited partner] investment into First Circle Capital Africa Fund I.”

First Circle Capital’s investment strategy is designed to go beyond payments, an area that has historically dominated fintech funding in Africa. The firm’s co-founders believe there is significant potential in developing the next generation of financial products that will further expand access to financial services for individuals and small and medium-sized enterprises (SMEs) across the continent.

“Expanding access, availability, and stability of financial services for African consumers and SMEs is critical for economic development and social resilience,” said Selma Ribica and Agnes Kisuule in a joint statement. “The majority of fintech funding to date has focused on payments, but there’s immense opportunity in the next layer of financial services. We are excited to have FSDAi Nyala Facility as our first institutional partner, given their strong track record in expanding access to financial services across Africa.”

First Circle Capital’s co-founders bring a wealth of experience to their roles. Selma Ribica, a former executive at M-Pesa, has a track record of success with early-stage fintech investments, with her personal angel portfolio achieving a 33x multiple on invested capital (MOIC). Her previous investments include Qonto, a French fintech valued at $5 billion in 2022, and Expensya, a Tunisian expense management company acquired by Medius in 2023. Agnes Kisuule, who has founded businesses in emerging markets such as Jordan, Ukraine, and Uganda, complements the team with her entrepreneurial background.

The fund operates out of offices in Kampala, Uganda, and Casablanca, Morocco, enabling First Circle to build a strong portfolio of investments across diverse African markets. The team leverages its operational know-how, successful track record, and extensive networks across Africa and globally to support portfolio companies with both fundraising and growth.

The FSDAi Nyala Facility, a subsidiary of FSD Africa Investments, was created to provide critical anchor funding to emerging local capital providers in Africa, with a specific focus on gender-lens investing. It supports alternative local capital providers (ALCPs) that prioritize financing for small and growing businesses (SGBs), particularly those in the “missing middle” stage, where access to funding is often challenging. Many of these ALCPs are founded and led by women, further aligning with FSDAi’s commitment to promoting gender equality in Africa’s financial landscape.

FSD Africa Investments operates as a UK-funded regional program based in Kenya, working across more than 30 countries to advance financial inclusion and promote green economic growth on the continent. FSDAi uses a variety of investment instruments to bridge funding gaps and foster transformative change in Africa’s financial markets, with the goal of improving job quality, reducing inequality, and promoting sustainable development.

First Circle Capital’s Africa Fund I, backed by FSDAi Nyala Facility and other investors such as Axian Group and serial entrepreneurs, represents a crucial step in Africa’s fintech evolution. By focusing on underfunded segments like insurtech and regtech, and supporting Africa’s next generation of financial innovators, the fund aims to deliver both financial returns for its investors and a positive impact in terms of financial inclusion, job creation, and gender equity.

As Africa continues its rapid fintech expansion, First Circle Capital is well-positioned to be a major player in driving growth and innovation in the sector, while helping to address some of the continent’s most pressing financial challenges.