Grace Ashiru
Novastar Ventures has reached the final close of its third fund, raising $147 million to invest in climate-focused and impact-driven startups across Africa. The fund, known as the Africa People and Planet Fund III, will back businesses working in sectors tied to resilience, sustainability and low-carbon growth.
The fund attracted support from a mix of returning and new investors, including major Japanese institutions such as SBI Holdings, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines and JICA. Other backers include British International Investment, Norfund, Swedfund and Proparco, reflecting continued institutional interest in African venture opportunities.
Novastar says the new fund will broaden both its geographic reach and sector focus across the continent. It has already invested in startups including Breadfast, Sistema.bio, Chowdeck and MoPhones, spanning industries such as food systems, clean energy, mobility and logistics. The firm says the strategy builds on more than a decade of investing in businesses that aim to deliver both financial returns and measurable social and environmental impact.
