Partech has impressively closed its second Africa-dedicated fund, Partech Africa II, at €280 million ($300 million+) within a year of closing its first fund. In the face of economic slump and declining investor interest, Partech shows unyielding commitment in bolstering African startups.
The number of investors contracting due to significant global economic changes and local challenges led to a decrease in venture capital for African startups. Specifically, the investment value fell from $6.5 billion in 2022 to $4.6 billion, with a 33% decrease in seed-stage deals and a 39% drop in growth-stage deals.
Partech Africa II, in commitment to support entrepreneurs at different stages, promises to provide valuable guidance and resources through its operating team based in Dakar, Nairobi, Dubai, and Lagos. This team, rich in industry connections, arranges mentorship and investment opportunities with experienced businesses, bringing interesting innovations and unique business models to the fore.
The fund aims to act as a catalyst in the African startup ecosystem, closing the resource and knowledge gap. It fosters the entrepreneurial spirit and contributes to the flourishing digital economy in Africa. A large portion of the fund will be allocated for Series A and B rounds, with investments already made in Revio, a South African payment platform, and startups from Egypt and Senegal.
Partech aims to support over 20 companies with investments between $1 million and $15 million, focusing on sectors integral to Africa’s economy such as fintech, agtech, health tech, retail, FMCG, and agency banking. Further, portfolio companies that profited from the initial fund will receive additional capital from this subsequent fund to aid in their growth.
Investors in Partech Africa II include U.S. and Middle Eastern pension funds, sovereign funds, the Dubai Future District Fund (DFDF), and the African Reinsurance Corporation (Africa Re). This varied range highlights the firm’s commitment to stimulate progress in African sectors. Despite capital raising challenges, Partech Africa’s fund has excelled past other large funds, signaling Africa’s potential as a valuable investment platform.
