• Thursday, June 13, 2024
businessday logo


Mr. Eazi’s VC targets growth in Nigeria’s music scene

Mr. Eazi’s VC targets growth in Nigeria’s Music scene

In today’s fast-paced and interconnected world, musicians are not only known for their creative prowess but are also leveraging their success to make smart investments.

Indeed, there has been a notable shift in recent years towards increased investment in the African tech startup scene, driven in part by successful products addressing vital needs, growing funding activity, and rising interest in mergers and acquisitions. This has attracted the attention of successful, high-earning individuals, including star celebrities, who are now channelling some of their wealth into this previously neglected asset class.

Nigerian artist Oluwatosin Ajibade popularly known as Mr. Eazi, in recent years, has through his venture capital fund, ‘Zagadat Capital’ invested in a series of Small and medium-sized enterprises (SMEs). With a focus on Africa’s tech and creative society, Mr. Eazi’s investments are expanding beyond the music industry, making an impact on various sectors.

By injecting capital into SMEs, the fund creates job opportunities, fosters entrepreneurship, and drives revenue generation within the music ecosystem and beyond. This business move not only revolutionises the notion that musicians are solely performers, but also proves that they can be ingenious entrepreneurs capable of creating substantial wealth through their investments. Here are some of the companies Mr. Eazi VC fund has invested in.

Investing in Tech and Creativity

Mr. Eazi’s VC fund, Zagadat Capital, has been instrumental in supporting and investing in a diverse range of businesses across Africa. One such investment includes Decagon, a software engineering training institute that equips young talents with the necessary skills for the digital age.

Furthermore, Zagadat Capital’s investment in Paisa, a platform focused on building financial security for families, enables individuals to take control of their financial futures. This investment reflects Mr. Eazi’s commitment to improving the financial well-being of African communities.

Read also: Beyond shows, entertainment industry is a boost to global economies and can do more for Africa’

PawaPay is another notable investment made by Mr Eazi. This fintech startup aims to simplify payment systems and drive financial inclusion in Africa. By supporting these tech ventures, Mr. Eazi is contributing to the creation of a robust and accessible financial infrastructure and developing skilled professionals who can drive innovation.

Beyond the realm of technology, Mr. Eazi’s investments extend to other sectors as well. The beauty sector also benefits from investments in Ruka Hair, a beauty brand dedicated to the African hair care, and sports betting sector, as demonstrated by Zagadat Capital’s investment in BetPawa.

Mr. Eazi’s entrepreneurial investments are not only impactful but also serve as a source of inspiration for aspiring musicians and artists. By setting an example, he is encouraging them to leverage their success to create lasting wealth and make a positive impact in diverse sectors.

Africa’s successful individuals and high-earning celebrities and public figures have historically favoured investments in the real economy such as infrastructure, natural resources, and other industries. However, the emergence of successful African tech startups and the recognition of their potential have changed perceptions and sparked increased interest in the local tech ecosystem.

The involvement of star celebrities as investors also brings other benefits to the tech ecosystem. Their prominence and influence can help raise awareness and draw attention to African startups, both domestically and internationally. This increased visibility can attract further investment, foster partnerships, and open doors to new markets.

The growing trend of African music stars investing in tech startups exemplifies the entrepreneurial spirit and foresight within the music industry. Ajebutter22, Falz, Davido, and Black Coffee, each in their unique way, are utilising their influence and resources to support emerging businesses, foster technological innovation, and drive economic growth.

Global superstar Davido has invested in Bitsika, a cryptocurrency exchange, Ajebutter22 has invested in the talent-matching platform TalentQL and the web3 startup Nestcoin, while the Falz, Nigerian rapper and social activist is also known to have invested in TalentQL.

Black Coffee, a South African DJ and record producer, is known to have backed the tech talent incubator ‘Andela’ and the fintech startup ‘Chipper Cash’, having set up a venture capital firm known as Flightmode Digital.

In 2021, Édouard Mendy, a professional goalkeeper formerly for English Premier League giant Chelsea FC and Senegalese national team footballer invested in the USD 2 M pre-Series A round of Julaya, an Ivorian fintech startup that claims to process more than USD 7.5 million in monthly transactions as it looks to digitise business payments in Francophone Africa.