Startup Lagos

25-Mar-2025

Startup Raises

LoftyInc Capital Announces $43 Million Fund to Boost Seed and Series A Startups Across Africa 1 month ago

LoftyInc Capital has achieved the first close of its third and largest fund, LoftyInc Alpha, with a total of $43 million earmarked for investment in late seed and Series A startups across the African continent.

The firm, known for its early investments in successful ventures such as Flutterwave, Moove, Reliance Health, TalentQL, OmniRetail, and Thndr, has secured backing from prominent development finance institutions (DFIs) including Proparco, International Finance Corporation (IFC), Dutch development bank FMO, AfricaGrow, and First Close Partners. Additional limited partners include Anava Funds of Funds, Egypt's MSMEDA, European family offices, and high-net-worth individuals from Africa.

"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."

Previously focused on pre-seed and seed investments, LoftyInc is strategically shifting its focus to address the funding gap at the Series A stage, where many African startups face challenges in securing follow-on funding.

"At pre-seed and seed, there's a lot of hype, but by Series A, the questions investors ask are very different. Our goal is to come in at seed, but our mandate is to help you get to Series A. We want to be the firm that gets startups over that hump," said Idris Ayodeji Bello, Founder and Managing Partner at LoftyInc.

LoftyInc's decision to concentrate on this critical stage comes as funding for African startups experiences a downturn, reflecting a global trend in venture capital activity. This strategic positioning also potentially offers faster exit opportunities to Series A investors such as TLCom and Partech. To date, LoftyInc boasts 14 exits from early-stage investments, including Flutterwave, Appruve, and Reliance Health.

To bolster its capabilities, LoftyInc has expanded its team with the addition of Mariam Kamel and Kevin Simmons as general partners, both of whom bring extensive investment banking and VC experience. Marsha Wulff and Michael Oluwagbemi will continue to manage the firm's previous fund.

Having initially focused on Nigeria, LoftyInc is adopting a more pan-African approach with this new fund, planning to deploy at least 30% of the capital in East Africa, North Africa, and Francophone Africa, where it already has portfolio companies such as Ejara, Chefaa, and Gahez Market. The fund will remain sector-agnostic, with a focus on healthtech, retail, deep tech, and artificial intelligence.

"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 institutionalising our investment approach," Bello said about the new fund.

"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."

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