Partech Africa, a venture capital firm specialising in digital and tech investments across the African continent, has recently announced the closure of its second fund at an impressive $300 million, just a year after reaching its first close.
Headquartered in Paris, Partech has strategically expanded its footprint to key tech hubs including Dakar, Nairobi, Dubai, Berlin, and Lagos. With a focus on supporting startups from seed to early-stage, the firm aims to foster innovation and growth within Africa’s burgeoning tech scene.
Partech Africa’s latest fund, dubbed Partech Africa II, marks the second of three funds launched by the VC in the past two years. The previous fund, Partech Africa I, closed in 2018 at $143 million. According to the firm, its portfolio currently serves over 1 million merchants and 20 million end-users across the continent.
Key investors in Partech Africa II’s first close include notable institutions such as the German Development Bank, anchor investor KfW, and the International Finance Corporation (IFC), signifying confidence in Africa’s tech potential.
Tidjane Deme, General Partner at Partech, highlighted the strategic focus of the new fund, stating, “We will primarily use the second fund for Series A and B rounds, as well as Series C rounds ranging from $1 million to $15 million.” He emphasised the firm’s commitment to supporting portfolio companies at various stages of their growth journey.
Deme also underscored the importance of Partech’s expanding team in effectively deploying capital and providing assistance to portfolio companies. “Our expanding team will enable us to offer valuable support across different stages of our portfolio companies’ development,” he remarked.
Interestingly, Deme clarified that while companies from the first fund may benefit from follow-on capital, the second fund will primarily focus on new opportunities.
Partech Africa I has already made significant strides, investing in 17 Series A and B startups across nine countries, with a focus on sectors such as fintech, retail and FMCG, agency banking, and health tech. Notable investments include TradeDepot, Wave, Yoco, Reliance, and Nomba.
Despite challenges in the global and local economic landscape, as indicated by a Partech survey projecting a 50% drop in investor activity in 2023, the closure of Partech Africa II signifies a potential resurgence in Africa’s startup ecosystem. The substantial fund closure could catalyze renewed investor interest and confidence in Africa’s tech potential, doing well for the industry’s growth trajectory in 2024 and beyond.
