Partech Africa, a private equity fund launched by Partech, has closed its second Africa-focused fund at $300 million, to invest in African startups from seed to series C.
Following a strong first closing announced last year, Partech Africa II, reached its final closing with all major investors from its predecessor fund, as well as top-tier investors making their first commitment to the Partech Africa platform and the African VC ecosystem.
Partech’s close comes as funding for Africa fell by 36% last year, and more than half of investors pulled back on funding African startups. The continent witnessed a notable decline in investor activity, with a 50% decrease in 2023 compared to the previous year.
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Amidst a backdrop of global VCs and institutional investors pulling back from Africa, Partech Africa’s recent fund closure is crucial.
The global investment platform’s second Africa-focused fund success is acknowledged by the backing of over 40 international investors, which includes South Suez and Bertelsmann, family offices, and prominent Development Finance Institutions (DFIs).
Key among the DFIs are anchor investor KfW (German Development Bank), the European Investment Bank (EIB), the International Finance Corporation (IFC) of the World Bank Group, FMO (Dutch Entrepreneurial Development Bank), Bpifrance Investissement, British International Investment (BII), DEG – Deutsche Investitions – und Entwicklungsgesellschaft mbH, and Proparco
Speaking on the second fund closure, General Partner at Partech Cyril Collon said,
“We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested, and some more than doubled their commitment. We are also honored to get 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”.
Collon further stressed the increased significance of securing funding at all stages, from Seed to Early Growth, in the current environment. This according to him shows the dedication to supporting the development of tech companies that can drive transformative impact in African economies and contribute to global innovation.
In addition to this, Partech has also announced the establishment of its new office in Lagos, Nigeria, further solidifying its commitment to the African tech landscape. “With our presence in Dakar, Nairobi, Dubai, and now Lagos, we are strengthening our support on the ground for entrepreneurs,” said Tidjane Deme, general partner at Partech.
Partech Africa II will double down on its strategy of investing across Africa with initial tickets ranging from $1M to $15M on Seed to Series C rounds, to support African companies and founders on their growth journey in both local and international markets.
Notably, among the investments from its second fund is Revio, a South African payment orchestration platform, where Partech Africa co-led the seed round with global fintech fund QED. Additionally, the firm has made undisclosed investments in an Egyptian proptech and a Senegalese e-commerce startup.
Partech’s African fund is among several notable funds that have emerged on the continent in the past year, despite challenges for fund managers in raising capital.
Launched in 2018, Partech Africa is a leading VC fund dedicated to technology startups in Africa. The global investment platform invests in equity rounds from Seed to Series C in startups which are changing the way technology is used in education, mobility, finance, healthcare, delivery, energy, etc.
Partech believes in the power of alliance in action, working together and side-by-side with the founders its back, in the shared pursuit of success.