Oui Capital, a five-year-old early-stage African investor, has achieved a rare feat in the venture ecosystem by returning its $4 million debut fund following the sale of some shares in Nigerian business banking platform Moniepoint. The fintech unicorn has proven to be a standout investment for Oui Capital, generating an $8 million return on its initial $150,000 investment.

This remarkable achievement is a testament to the lucrative potential of early-stage bets in fintech on the African continent. Oui Capital's success is even more notable given that many venture capital firms globally struggle to return their first fund. The firm's ability to do so in just five years underscores the significance of its investment in Moniepoint, which has become Nigeria's largest merchant acquirer.

In October last year, Moniepoint raised $110 million in funding at a $1 billion valuation in a Series C round led by Development Partners International. Oui Capital sold some of its shares into the deal, generating enough returns to pay back its fund. Any future returns will now be pure profit for its investors. This milestone is a rare occurrence in Africa's venture ecosystem, where exits remain scarce.

According to The Big Deal, only 143 out of 2,971 venture deals since 2019 have led to exits. Most startups are still in their early or growth stages, far from the maturity needed for significant exits. Unlike developed markets with robust M&A and IPO options, Africa's tech ecosystem is still growing, leaving fewer startups in an exit-ready position.

Oui Capital's success can be attributed to its portfolio construction and investment strategy. The firm's managing partner, Olu Oyinsan, credits the fund's traction to date to its careful selection of investments, entry price, equity ownership, and timing of exits. Oui Capital's portfolio includes other startups such as Duplo, Maad, and Matta, which are digitizing payment flows, building B2B e-commerce platforms, and creating marketplaces for chemicals, respectively.

The investor, which writes checks of up to $400,000 for seed-stage startups across Africa, launched a second fund, Mentors Fund 2, in 2022. Although the fund initially targeted $30 million, it closed at $12 million. Oyinsan has indicated that Oui Capital has no plans to rush into fundraising due to its strong position, but it might raise a third fund later this year.

Oui Capital's achievement is a significant milestone for the African venture ecosystem, demonstrating the potential for lucrative returns on early-stage investments in fintech and other sectors. As the ecosystem continues to grow, Oui Capital's success serves as a beacon of hope for investors and startups alike, highlighting the importance of careful portfolio construction and investment strategy.

In a continent where exits are rare, Oui Capital's return of its debut fund is a remarkable achievement that underscores the firm's investment prowess and the potential for fintech startups to generate significant returns. As the African tech ecosystem continues to evolve, Oui Capital's success is likely to inspire other investors and startups to strive for similar achievements.