South African based venture capital firm HAVAÍC has reached another major milestone in its fundraising journey. The firm has confirmed the third close of its US$50 million African Innovation Fund 3, bringing total commitments to more than US$30 million. The progress follows new backing from South African impact investor E Squared Investments.
The development signals continued institutional confidence in African venture capital at a time when global funding conditions remain tight. It also strengthens the pipeline of capital available to early stage African technology businesses that are already generating revenue and seeking to scale.
HAVAÍC described the third close as “another milestone in our fundraising journey” and said it underscores “continued institutional backing for African venture capital.” With US$30 million now secured toward its US$50 million target, the fund is moving steadily toward full deployment.
E Squared Investments was established by Allan Gray in 2007. The firm channels catalytic capital to support responsible entrepreneurship and inclusive growth in South Africa. Its entry into Fund 3 reflects a shared focus on sustainable business building.
Pyi Maung, chief investment officer at E Squared, said the decision to commit capital was grounded in alignment. “HAVAÍC’s track record of backing African innovation that translates into sustainable, real-world outcomes strongly reflects our investment philosophy,” he said. He added that the firm’s “combination of capital and strategic support enables Africa-born startups to scale responsibly and access global markets,” which aligns with E Squared’s focus on long term value creation.
Backing Revenue-Generating African Tech
African Innovation Fund 3 is the third iteration of HAVAÍC’s pan African investment vehicle. It was launched in August 2024 with a mandate to back up to 15 high growth, post revenue startups born in Africa. The fund targets technology enabled businesses building solutions for both local and global markets.
Since launch, the fund has already deployed about US$10 million into eight companies. These include SAPay, a Johannesburg based fintech digitising fare payments in South Africa’s minibus taxi industry, and Entersekt, a Stellenbosch originated fraud prevention technology firm.
The portfolio also features follow on investments in Sportable, a sports data and analytics platform, and Talk360, an international voice calling service that connects users across borders.
Earlier Fund 3 commitments include stakes in NjiaPay, a pan African payments platform and SwiftVEE, a digital livestock trading marketplace.
Across its broader portfolio, HAVAÍC has continued to support scaling ventures through follow on investments in companies such as RNR App, RapidDeploy, hearX Group and AURA. This sustained backing highlights the firm’s strategy of not only investing early but remaining involved as companies grow into larger markets.
Unlocking International Growth and Job Creation
HAVAÍC says its model goes beyond providing funding. The firm positions itself as a provider of “smart capital,” combining financial investment with strategic support to help companies expand internationally. With fresh backing from E Squared and other institutional investors, the firm plans to accelerate growth across its portfolio.
Ian Lessem, managing partner at HAVAÍC, said the new capital will help deepen the impact of the fund. “We look forward to accelerating our portfolio’s impact with the support of E Squared’s investment and doubling down on our strategy to grow local innovation by unlocking international markets,” he said.
Lessem pointed to the performance of the firm’s portfolio companies as evidence that African venture capital can deliver both financial returns and social value. “As evidenced by our portfolio companies’ growth and enduring positive returns, the African VC industry has the talent, technology and opportunities to catalyze sustainable job creation and social empowerment on the continent,” he said. He added that this is where investors with a strong appetite for impact should be deploying their capital.
E Squared now joins a group of leading institutional backers that include Fireball Capital, Universum Wealth, SA SME Fund and Sanlam Multi-Manager. Their collective commitments are helping unlock capital and growth in the local venture capital ecosystem.
For African founders, the implications are clear. Access to patient capital remains one of the biggest barriers to scaling innovation on the continent. Funds such as African Innovation Fund 3 are building a bridge between local ingenuity and global markets. By backing revenue generating startups and supporting them through expansion, HAVAÍC is contributing to a more resilient innovation economy.
As the fund moves closer to its US$50 million target, its progress signals more than a fundraising milestone. It reflects growing confidence that African technology businesses can compete globally, create jobs locally and deliver sustainable outcomes. In a market that often faces funding gaps, this latest close offers practical momentum for entrepreneurs ready to scale.
