LoftyInc Capital, a pan-African VC firm, has announced that it has secured $43 million in the first close of its third fund, LoftyInc Alpha.
The fund marks a strategic shift from pre-seed and seed investments to focusing on late-seed and Series A startups across Nigeria, Egypt, Kenya, and Francophone Africa.
Operating out of Nigeria, Egypt, and Kenya, LoftyInc is one of the African VC ecosystem’s earliest and most successful investors, with early investments in prominent startups such as Flutterwave, Andela, Wave Mobile Money, RelianceHealth, Thndr, OmniRetail, and Moove.
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With over a decade of venture capital experience, LoftyInc has consistently delivered strong returns to its investors while advancing Africa’s position as a growing hub for tech innovation. The Alpha Fund is designed to build on insights from previous funds. It will focus on seed investments that enable entrepreneurs to build resilient companies and achieve scalable growth.
The Fund will prioritize sectors such as financial services, retail enablement, logistics, healthcare, climate tech, and artificial intelligence, reflecting the diverse opportunities across the African continent.
The first close of the Alpha Fund attracted a diverse and strategic investor base, including commitments from Middle Eastern and African sovereign wealth funds such as Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA), Tunisia’s Anava Fund of Funds, and others.
Development Financial Institutions (DFI) investors include FMO (the Dutch Entrepreneurial Development Bank), the Dutch Good Growth Fund (DGGF), Proparco with FISEA, and AfricaGrow, a Fund of Funds managed by Allianz Global Investors and advised by DEG Impact GmbH, as well as the International Finance Corporation (IFC).
LoftyInc’s team brings decades of operational and investing expertise and regional insights to the Fund.
Commenting on the recent funds raised, LoftyInc Managing Partner Idris Ayodeji Bello said,
“Our previous funds were backed primarily by African professionals and experienced entrepreneurs who not only provided capital but also leveraged their networks and industry expertise to help startups thrive establishing the foundation for institutionalizing our investment approach. In an exceptionally challenging fundraising climate, we are thrilled to have surpassed our first-close target, attracting new institutional investors while reaffirming the commitment of our existing backers. This latest raise positions us to scale our vision: empowering Afropreneurs who build transformative, tech-driven solutions for Africa’s everyday economy.”
FMO’s Marieke Roestenberg adds, “The Loftylnc team has demonstrated deep local expertise, a track record, and networks across Africa. We are glad to support its effort to institutionalize its VC platform alongside other investors and further promote tech entrepreneurship in the region.”
“This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa,” said Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC. “The Alpha Fund will help develop the venture capital ecosystem across Africa and create a pipeline of investment projects that can attract later-stage investors to the region, which is underserved by global venture capital. The project is part of the IFC Startup Catalyst program, which supports early-stage entrepreneurs, and the ScaleX program, which supports female founders.”
First Close Partners commented: “We at First Close Partners were drawn to invest in Lofty because of its pioneering ecosystem cultivation efforts in Africa, its network of best-in-class local founders, and its diverse Partnership. Our fund-of-funds invests in VC firms around the globe, and we feel that Lofty is uniquely positioned to take advantage of the African continent’s vibrant entrepreneurial ecosystem, high growth potential, and attractive valuations.”
LoftyInc runs three funds simultaneously, the second fund, which is its first formal VC fund, is largely focused on Nigeria. On the other hand, this third fund follows the thesis of LoftyInc’s first fund; investing in startups across different markets and sectors in Africa and the diaspora.
According to a TechCrunch report, from 2017-2020, LoftyInc wrote cheques worth more than $1.2 million in rounds to six Nigerian startups, which include Printivo, RelianceHMO, Epump, YouVerify, Shyft Power Solutions and Flutterwave.
By 2021, the firm expanded its reach with a second fund, closing at $14.2 million and taking a pan-African approach. This expansion led to investments in key markets like Egypt, South Africa, and Francophone Africa. Notably, Loftylnc’s second fund also received investment from Meta’s NPE team, marking the tech giant’s only known investment in an African VC firm.
With over 200 investments and 14 successful exits, Loftylne continues to refine its strategy to meet the changing needs of African startups. Its latest fund, Loftylnc Alpha, is set to play a crucial role in helping startups transition from early traction to scalable growth, ensuring that more African companies successfully reach Series A and beyond.