This size solidifies Partech Africa as the largest fund dedicated to African startups, originally targeting €230 million before fundraising efforts began.
Amidst a backdrop of global VCs and institutional investors pulling back from Africa, Partech Africa’s recent fund closure is significant. The continent witnessed a notable decline in investor activity, with a 50% decrease in 2023 compared to the previous year, as highlighted in a Partech report.
Partech Africa, known to lead rounds, aims to offer stability and support for startups navigating these challenging times by focusing on seed to Series C rounds.
Partech Africa is committed to supporting founders at various stages of their journey, leveraging its position in the ecosystem. “The capacity to anchor rounds at all stages from seed to early growth, is more critical than ever,” said Cyril Collon.
With expanding team and new offices, Partech Africa aims to effectively deploy capital and offer assistance to portfolio companies across various stages, predominantly deploying the majority of its second fund between Series A and B rounds.
Partech Africa has already made notable investments from its second fund, including Revio, a South African payment orchestration platform, and undisclosed investments in an Egyptian proptech and a Senegalese e-commerce startup.
Partech Africa, having backed 17 startups in its first fund, prioritizes crucial sectors such as fintech, agritech, health tech, retail, FMCG, and agency banking, which are vital for Africa’s employment and economic activity.
Partech Africa’s investor base reflects a diverse range of profiles, with participation from U.S. and Middle Eastern pension funds, sovereign funds, the Dubai Future District Fund (DFDF), and the African Reinsurance Corporation (Africa Re) for its second close.
Partech’s African fund is among several notable funds that have emerged on the continent in the past year, reflecting continued investor interest in Africa’s growth potential.
