Partech successfully concludes its second Africa-focused fund, Partech Africa II, raising over €280 million ($300 million+), just one year after its initial close. This achievement solidifies Partech Africa’s position as the largest fund dedicated to African startups.
Amidst a backdrop of reduced investor activity in Africa, as highlighted in a Partech report citing a 50% decrease in 2023 compared to the previous year, the closure of Partech Africa’s recent fund holds significant importance. The decline in venture capital inflows for African startups underscores the challenges posed by global economic shifts and local factors.
Partech Africa’s focus on seed to Series C rounds may provide stability and support for startups during these challenging times. The firm aims to assist founders at various stages of their journey, leveraging its position in the ecosystem to anchor rounds from seed to early growth.
With expanding team capabilities, Partech Africa seeks to effectively deploy capital and offer assistance to portfolio companies across different stages. Establishing a presence in Lagos reflects the firm’s commitment to engaging closely with startups in the region, given the city’s significance.
The majority of Partech Africa’s second fund will be deployed between Series A and B rounds. Investments from the fund include Revio, a South African payment orchestration platform, among others. The firm intends to back over 20 companies with investments ranging from $1 million to $15 million.
Partech Africa prioritizes sectors crucial for Africa’s employment and economic activity, including fintech, agtech, health tech, retail, FMCG, and agency banking. Notable investments from its first fund include Wave, TradeDepot, Yoco, and Reliance.
Partech Africa’s diverse investor base reflects a range of profiles, including development finance institutions, commercial investors, and family offices. Notably, the fund attracted participation from U.S. and Middle Eastern pension funds, sovereign funds, and other strategic investors for its second close.
The emergence of funds like Partech Africa reflects continued investor interest in Africa’s growth potential, despite challenges for fund managers in raising capital. Other notable funds include Norrsken22, Al Mada, Novastar’s Africa People + Planet, and Enza Capital, among others.
