Partech Africa II Fund Reaches Final Close

Partech has announced the final closing of its second Africa fund, Partech Africa II, at a hard cap of €280m ($300m+), attracting support from a diverse group of 40+ international investors.

“We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested and some, more than doubled their commitment”, said Cyril Collon, General Partner at Partech. 

“We are also honored to get the 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.”

Following a strong first closing announced last year, Partech Africa II has reached its final closing with all major investors from its predecessor fund, but also top tier investors making their first commitment into the Partech Africa platform and into the African VC ecosystem.

This oversubscribed final closing has provided the opportunity to attract new categories of global institutions namely, US and Middle East pension funds and sovereign funds. 

It also includes new strategic investors Africa Re and Dubai Future District Fund (DFDF), who are joining the existing early Partech Africa supporters: Orange, AXIAN Investment and the African Development Bank Group (AFDB).

Overall, the fund has attracted family offices, commercial investors such as South Suez and major Development Finance Institutions (DFIs), including anchor investor KfW, the German Development Bank, the European Investment Bank, the International Finance Corporation, FMO, Bpifrance Investissement, British International Investment, DEG and Proparco.

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. 

The Fund already counts three investments in its portfolio with a real-estate platform in Egypt, a payment orchestration startup in South Africa and an e-commerce platform in Senegal. 

The team expects to build a portfolio of over 20 companies across the continent.

In addition, Partech has announced the opening of a new office in Lagos, Nigeria, saying that it is looking to hire more team members.

“We are also expanding our team and footprint on the continent. We are excited to have senior investment officer Tito Cookey-Gam join the team, to open our office in Lagos, home to almost a third of our portfolio”, said Tidjane Deme, General Partner at Partech. 

“With our presence in Dakar, Nairobi, Dubai and now Lagos, we are strengthening our support on the ground for entrepreneurs”.

In addition to this expansion, Partech Africa is actively recruiting a senior profile for “Portfolio Strategy & Operations” to drive value creation and exit building, and a Lagos-based Investment Analyst.

The Partech Africa II final closing announcement comes in the context of a 50% decrease in the number of investors active in African tech ecosystem as highlighted in Partech’s recent 2023 Africa Tech Venture Capital Report.

“In this context”, commented Collon, “the capacity to anchor rounds at all stages from Seed to Early Growth, is more critical than ever. It reinforces our mission to enable the emergence of technology companies that will create transformative value for African economies and shape the future of innovation globally”.