DPI Venture Capital, a new investment unit launched by DPI, is focusing on advancing financial inclusion and access to financial services across Africa and the Middle East. The firm has acquired Egypt-based fintech fund manager Nclude, strengthening its venture capital strategy. The acquisition brings Mastercard, Egypt’s e-Finance Investment Group, and the Egyptian Banks Company as limited partners in DPI Venture Capital.
Ashley Lewis, Managing Partner at DPI Venture Capital, emphasized that the firm’s limited partner base is highly commercial, reflecting the growing interest in financial inclusion at the venture capital level. DPI’s focus will be on seed to Series C investments in tech companies that provide financial services to small businesses and underserved consumers, particularly in Egypt. The firm plans to allocate 30% of its capital to other parts of Africa and the Middle East.
The fintech strategy has been in development since DPI closed its third private equity fund at $900 million in 2021, which coincided with the boom in African fintech and the global venture capital sector. Despite a slowdown in investments last year, the demand for better, cheaper, and more accessible financial services still creates opportunities in the sector. DPI invested in MNT-Halan’s $157 million growth round, one of North Africa’s largest fintech deals of the previous year.
Nclude was launched in 2022 by Banque Misr, National Bank of Egypt, and Banque du Caire as part of Egypt’s national financial inclusion strategy, which mandates that commercial banks allocate 25% of their portfolios to micro, small, and medium-sized enterprises. Through the acquisition, DPI Venture Capital opens up opportunities for strategic investments and collaborations with a broader range of financial services companies.
According to Lewis, the investment ecosystem is shifting away from being development finance institution-heavy and increasingly embracing a diverse range of limited partners.
