Another investment expansion for African Tech Business. Paratech Africa II, The Substantial Africa-focused VC firm announces the first closing at €245M, an achievement which exceeds their target fund size for the second firm of the company . This second iteration of Partech’s Africa-focused strategy is backed by major Development Finance Institutions, as well as Institutional and Commercial investors.
“We had set an ambitious goal for Partech Africa II at €230M, with a hard cap at €280M, essentially doubling the size of our first fund. We overreached it with a closed amount already above the target fund size.” comments Cyril Collon, General Partner at Partech Africa. The fund focused on African startups that use tech to address large emerging market opportunities. It targets industries ranging from Financial inclusion (fintech, insurtech, new distribution models), to online and mobile consumer services (commerce, entertainment, education, digital services) as well as mobility, supply chain services and digitization of the informal economy.
Launched in 2018 ,Partech put in action its Africa-focused strategy with a first Fund of €125 million.. It targeted startups that have their main activity in Africa and need to raise between €0.5M and €5M as initial tickets. Among the first investments of the fund, there is the Nigerian retail distribution startup TradeDepot and the South-African Fintech ,Yoco. Today, the portfolio counts 17 companies started in 9 African countries and now operating in 27 countries on the continent. These category leaders are bringing value to 1M+ merchants and 20M+ end users, across a large set of sectors from Fintech to Healthtech, Logistics and Edtech. This portfolio has attracted 10%+ of the investment in Africa in 2021 as well as in 2022.
“With Partech Africa II, our investment thesis is actually to pursue the successful strategy of our first fund.” explains Tidjane Dème, General Partner at Partech Africa. “We launched this strategy when less than $400M were invested annually in equity on the continent. African tech companies are now raising $6B annually validating our early commitment beyond any expectations. Still, we know there are many more champions to build in Africa and we are ready to support them.”
Building on the first fund’s learnings, Partech Africa will continue to lead and co-lead rounds with a larger ticket range ($1M to 15M), co-investing with the best regional and global players, playing an active role in bringing financial, strategic, and operational support to African founders. This marks the continuous expansion of investment opportunities for african tech businesses and sets high hopes for growth the economic and digitalisation of the african continent