Competition for a share of the outdoor advertising market has intensified following a move by Fanisi Venture Capital to acquire a minority stake in an outdoor advertising firm Live Ad Ltd for Sh284 million ($3 million).
Fanisi Capital Managing Partner Ayisi Makatiani hailed the deal, citing the entrepreneurial spirit at Live Ad as a defining trait of the business.
“The entrepreneur has a vision to transform Live Ad from an already successful business to a market leader. We have bought into this vision and endeavour to support the entrepreneur and the business to deliver it,” said Makatiani.
He said Live Ad’s partnership with Fanisi will provide the impetus needed to take the company through its growth strategy, to establish itself as a strong regional player.
Fanisi Capital, which manages the $50 million (Sh4.8 billion) Fanisi Venture Capital Fund will enable Live Ad Ltd to expand and increase its presence across Kenya.
The deal will also enable the firm to grow the number of billboards it owns over the next four years.
This will be in addition to establishing and growing its presence in new towns in the country. Currently, Live Ad has over 200 billboards in Nairobi and other towns across Kenya.
The advertising firm competes for business with other major outdoor advertising firms such as Magnet Ventures, Ad Site, Think Outdoor, Alliance Media among others.
Outdoor ads
While companies selling consumer products are the biggest consumers of advertising and market services, lately, technology, telecommunications, financial services and entertainment have increased their spends in outdoor ads.
“As part of our growth and differentiation strategy, we will increase our product range, offer more value adding services to clients and provide quality customer service,” said Live Ad Chief Executive Officer James Maina.
“This partnership with Fanisi will make Live Ad’s path to success much easier and we will continue to focus on quality product and customer loyalty.”
This is Fanisi’s first foray into the outdoor advertising space. The sector is expected to follow a high growth path as more businesses set up in the region.
With the Live Ad acquisition, Fanisi has added yet another investment into its Kenyan portfolio which consists of Haltons, a retail pharmacy chain currently operating over 25 outlets in Nairobi and Ngare Narok Meat Industries, which owns a modern abattoir in Rumuruti and distributes meat across the country.
Fanisi’s investment in the education sector includes Hillcrest International Schools, a group of premier learning institutions focusing on British curriculum.
The fund is also an investor in two Rwandese businesses, Minimex, a maize milling operation that is involved in the maize value chain - sourcing, drying, storing, trading, purchasing, milling maize and animal feed production and Sophar, a pharmaceutical wholesaler and distributor.
