Kua Ventures, a faith-driven impact investment firm based in Kenya, has reached a new investment milestone after surpassing USD 1 million (approximately Ksh. 145 million) in funding committed to the growth of Small and Medium Enterprises (SMEs) in the country.
The milestone follows four rounds of funding over the last three years that have seen 20 growing local SMEs added to the Kua Ventures portfolio.
The investment journey of Kua Ventures in Kenya began in 2020 at the onset of the COVID-19 pandemic. Then, many businesses, particularly SMEs, had been adversely affected by the economic effects of the pandemic. The countrywide dust-to-dawn curfews, reduced cash flows among Kenyan consumers, and disruption in supply chain set back many enterprises that were forced to reduce production, lay off employees or even shut down.
As the pandemic continued to take a toll on the country’s economy, Kua Ventures began to provide the much-needed capital, coaching and community support for SMEs to survive the economic downturn.
Today, the Kua Ventures model for partnering with SMEs for growth is founded on the three pillars of Capital, Coaching and Community (3Cs). The capital component consists of growth capital of between USD 50,000 – 100,000 (approximately Ksh. 7 million – 14 million) mostly through straight debts, revenue shares and convertible notes.
Understanding that capital isn’t the silver bullet for the success of SMEs, Kua Ventures also provides Coaching in the form of one-on-one mentorships to help entrepreneurs navigate different phases of their businesses, as well as a Community of like-minded entrepreneurs where founders connect, fellowship, learn and share their entrepreneurial experiences.
The 3C model by Kua Ventures positively impacts the Entrepreneur, Enterprise and Employee (3Es) in terms of unlocking growth and efficiency of the business, helping founders achieve kingdom impact in their communities, creation of more stable jobs, among other positive outcomes.
Reflecting on the remarkable journey and the landmark $USD 1 million cumulative investment, Kua Ventures Operations Director, Madalena Santos, said the organization was committed to supporting more Kenyan small businesses to realise their social impact in job creation and poverty reduction.
Having invested over USD 1 million in 20 businesses in the last three years, we have seen the potential in the Kenyan entrepreneurial ecosystem and look forward to investing an additional USD 2 million by June 2024 so that entrepreneurs within our portfolio can continue making a positive impact in their communities and beyond.Madalena Santos, Operations Director, Kua Ventures
On his part, Kua Ventures Executive Director, Peter Fry said the three-year period was a testament to the success of the organization’s 3C model consisting of Capital, Coaching and Community.
We have found that our 3C model clearly works in Kenya and that there are many growth-oriented businesses led by faith-driven entrepreneurs throughout the country. As revenue grows, the businesses add hardworking employees to their workforce and sustain their own vision of local outreach. In turn, this gives us great optimism about helping more local entrepreneurs grow their businesses and support their communities.Peter Fry, Executive Director, Kua Ventures
Over the last three years, SMEs supported by Kua Ventures have contributed directly to creation of more than 200 jobs in Kenya, providing a safe nest for communities living in poverty to sustain their lives. This is in line with Kua Ventures’ mission of providing economic and spiritual resources for hardworking men and women to unleash their capacities and liberate them from the entanglements of poverty.
With more than USD 1 million investment already committed to supporting Kenyan SMEs, and an additional USD 2 million set aside to almost double the portfolio over the next 10 months, Kua Ventures is poised to positively impact the SME sector of the country while fostering socio-economic growth of individuals and communities.