Press Release: Uganda’s GoBigHub raises USD 250,000 as part of Series B targeting USD 5,000,000

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Ojijo Pascal the founder of GoBigHub
Ojijo Pascal the founder of GoBigHub
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GoBighub, a platform that connects local investors to local entrepreneurs, has begun fundraising for their series B with USD. 250,000 investment. This was by a below the radar European boutique investment fund, Star Fund.

The family office boutique fund made the investment as a lead investor. Representing three other family office funds with a target of investing up to USD. 50 million dollars in Africa within this financial year.

GoBigHub has created a pool of funds capitalized by local investors. GoBig No Collateral Contract Financing Fund, focused on financing LPOs, tenders, contract farming, and such short-term jobs by youth and women at ticket sizes averaging UGX. 15,000,000 per contract, and for not more than 3 months.

The fund charges an application fee for due diligence and monitoring of 1.5% deducted on disbursement, and profit sharing at the ratio of 60:40, to the favor of the entrepreneur.

The investment, one of several, will be a mix of minority equity stake, but control of the board. Further, the mix equity and debt instrument have both instruments having convertible features, to hedge risks, and offer the investor the best of both worlds, in terms of return and risk matrix.

The fund was created as a solution to the challenge facing youth and women businesses in Uganda that are struggling to get tenders and LPOs. Most of these micro-entrepreneurs lack the capital to finance the contracts. Either due to lack of security, or due to lack of mandatory 3-years-in-business rule before they can access a loan, or both.

GoBigHub also runs a crowdfunding platform that has over the last year seen some individual investors and investment clubs invest up to of USD. 315,310 in local micro-enterprises.

Founded by Ojijo, a trained lawyer and poet turned entrepreneur, and former schoolmates from the UK, gobighub.com is in the building phase of the fund. Hence the naming of the fundraising as series B “Build”. And, intends to raise a total of USD 5,000,000 before end of this financial year in a mix of both equity and debt.

Related: Wazi Vision Secures $800,000, Joins Safarini Translator and Divine Masters as Ugandan Startups Funded by GreenTec Capital

The fund is also targeting other businesses in the region, and was attracted by GoBigHub’s risk management model, a five-pronged risk management strategy of: (1) insuring the contract; (2) direct disbursement of funds by gobighub.com to the suppliers, to ensure that entrepreneurs actually procure the items needed to be supplied; (3) liening of company shares, assets, bank accounts, and payment accounts, to ensure GoBigHub controls funds when contract is paid; (4) 360 degree due diligence and supervision of entire contract from issuance, through delivery, until payment; and (5) full financing model based on paying for all costs, including incidental costs to ensure delivery.

The fund manager, Karl Mark, also noted that “the stellar returns by GoBigHub, averaging 9% per quarter (after tax), hence, an annual return of 36% a year, is only rivaled by only the topmost hedge funds and best-traded forex funds”. The micro-ticket size averaging UGX. 15 million, provides an opportunity for scaling, and wider reach of the fund to more beneficiary enterprises.

Previously located in Kabalagala on Tirupati Mazima Mall, GoBigHub recently relocated to Lourdel road on AHA Towers.

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