SMBC invests in Novastar Ventures’ Africa fund

The fund’s budget for fiscal year 2025 is $340m.

Sumitomo Mitsui Banking Corporation (SMBC) has invested in Novastar Ventures Africa People and Planet Fund III, L.P., managed by Novastar Ventures Ltd.

Founded in 2014, Novastar is one of Africa’s largest venture capital firms with more than $200m under management. 

It backs startups in fintech, mobility and green technology, aiming to strengthen social infrastructure and address issues such as carbon reduction and biodiversity.

The investment was made through SMBC’s “Social Value Creation Investment Fund,” part of Sumitomo Mitsui Financial Group’s Mid-Term Management Plan.

The fund’s budget for fiscal year 2025 is $340m (¥50b), up from $270m (¥40b) the year before.

SMBC said the investment will support the growth of African startups and create opportunities for collaboration between local and global businesses.

($1.00 = ¥147.36)