Following a strong first closing announced last year [2023], Partech Africa II, has reached its final closing at €280M ($300M+) with all major investors from its predecessor fund but also top tier investors making their first commitment into the Partech Africa platform and into the African VC ecosystem.
This over-subscribed final closing has provided the opportunity to attract new categories of global institutions namely, U.S. and Middle East pension funds and sovereign funds. It also includes new strategic investors:
- Africa Re and
- Dubai Future District Fund (DFDF)
who are joining the existing early Partech Africa supporters:
- Orange
- AXIAN Investment and
- The African Development Bank Group (AFDB)
Overall, the fund has attracted support from a diverse group of 40+ international investors, from commercial investors such as South Suez and Bertelsmann to family offices, and major Development Finance Institutions (DFIs). The set of DFIs includes:
- Anchor investor, KfW, the German Development Bank
- The European Investment Bank (EIB)
- The International Finance Corporation (IFC), a member of the World Bank Group, FMO
- The Dutch entrepreneurial development bank, Bpifrance Investissement
- British International Investment (BII), the UK’s development finance institution, and
- Impact investor, DEG – Deutsche Investitions – und Entwicklungsgesellschaft mbH and Proparco.
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Key info about the fund:
- Name: Partech Africa II
- Size: $300M+, hard cap reached
- Fund Overview: Backing champions of African tech since 2017, the Africa team seeks the next generation of category leaders across the continent. Investing from seed to growth, the team is based on the ground, and leverages their operational expertise and Partech’s global networks to support founders on their journey to scale.
- Sector Focus: The team partners with entrepreneurs who combine technology and operational excellence to address large opportunities across the continent and across sectors.
- Stage Focus: With initial tickets ranging from $1M to $15M, the funds focus on Seed to Series C rounds.
- Geographic Focus: Partech Africa II invests in tech-enabled business across the whole African continent.
- Portfolio: Partech Africa II already counts 3 investments in its portfolio in Egypt, South African (Revio) and Senegal. The team expects to build a portfolio of over 20 companies across the continent. The previous fund invested in 17 companies including champions such as Wave, Yoco, TradeDepot and MoneyFellows.
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“We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested and some, more than doubled their commitment”, said Cyril Collon, General Partner at Partech.
“We are also honored to get the support from a new set of strategic investors from the US, the Middle East and Africa, and for some of whom, this marks their first commitment in African Tech.”
Partech Africa II will double down on its strategy of investing across Africa with initial tickets ranging from $1 million to $15 million on Seed to Series C rounds, to support African companies and founders on their growth journey in both local and international markets. The Fund already counts 3 investments in its portfolio with:
- A real-estate platform in Egypt
- A payment orchestration startup in South Africa, and
- An e-commerce platform in Senegal
The team expects to build a portfolio of over 20 companies across the continent.
“We are also expanding our team and footprint on the continent. We are excited to have senior investment officer Tito Cookey-Gam join the team, to open our office in Lagos, home to almost a third of our portfolio”, added Tidjane Deme, General Partner at Partech.
“With our presence in Dakar, Nairobi, Dubai and now Lagos, we are strengthening our support on the ground for entrepreneurs.”
In addition to this expansion, Partech Africa is actively recruiting a senior profile for ‘Portfolio Strategy & Operations’ to drive value creation and exit building, and a Lagos-based Investment Analyst.
The Partech Africa II final closing announcement comes in the context of a 50% decrease in the number of investors active in African tech ecosystem as highlighted in Partech’s recent 2023 Africa Tech Venture Capital Report.
“In this context”, commented Collon, “the capacity to anchor rounds at all stages from Seed to Early Growth, is more critical than ever.
It reinforces our mission to enable the emergence of technology companies that will create transformative value for African economies and shape the future of innovation globally.”
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