Global VC firm Partech Africa has defied the recent funding slowdown to close its second Africa-focused fund, "Partech II," at a record-breaking $300 million. This marks a significant increase compared to their first fund, which closed at $143 million in 2018. The new fund aims to propel African startups across multiple sectors by investing in seed to Series C rounds with ticket sizes ranging from $1 million to $15 million.
This announcement comes amidst a challenging landscape for African startups, with funding dropping by 36% last year and over half of investors retreating from the market. However, Partech's commitment demonstrates their continued belief in the continent's immense potential.
"We are witnessing a resilient and innovative tech ecosystem in Africa," said Cyril Collon, General Partner at Partech. "Despite the temporary funding dip, we see tremendous opportunities to support visionary entrepreneurs and contribute to Africa's economic growth."
The fund attracted reinvestments from nearly all investors in Partech's first fund, and some even doubled their commitment. Additionally, new "strategic investors" from the US, the Middle East, and Africa joined the initiative, including Africa Reinsurance Corporation and Dubai Future District Fund (DFDF). This diverse pool of investors highlights the growing global interest in Africa's tech scene.
Building on their successful track record, Partech has already invested in three startups with the new fund: Revio, a South African payment company, and two undisclosed startups in Egypt and Senegal. They also plan to open a new office in Lagos, Nigeria, recognizing it as a key hub for their portfolio and further strengthening their on-the-ground presence in Africa.
"Our expansion into Lagos demonstrates our commitment to supporting entrepreneurs across the continent," said Tidjane Deme, General Partner at Partech. "With offices in Dakar, Nairobi, Dubai, and now Lagos, we are uniquely positioned to provide tailored support and help African startups scale globally."
Partech's second fund is a significant vote of confidence in the African tech ecosystem, sending a positive message to investors and entrepreneurs alike. It signifies a continued push towards unlocking the vast potential of African innovation and fostering its contribution to the global tech landscape.
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