Partech Africa II reaches first close at €245m, above target fund size

Partech Africa II reaches first close at €245m, above target fund size

Published: 08-02-2023 11:02:00 | By: Pie Kamau | hits: 3143 | Tags:
Africa
February 2023
Tech
Venture Capital & Private Equity
Partech, the global technology investment firm, announced the first closing of Partech Africa II at €245 million, already above the target fund size. This second iteration of Partech’s Africa-focused strategy is backed by major Development Finance Institutions, as well as Institutional and Commercial investors.
 
Partech Africa II will double-down on its successful strategy to identify and support the next generation of category leaders across the continent. The Fund will provide $1 million to $15 million initial tickets from Seed to Growth to support entrepreneurs who use a combination of technology and excellent operations to address some of the hard-to-solve but very large opportunities the continent offers across all sectors.
 
Cyril Collon, General Partner, Partech Africa: “We had set an ambitious goal for Partech Africa II at €230 million, with a hard cap at €280 million, essentially doubling the size of our first fund. We overreached it with a closed amount already above the target fund size. This would not have been possible without the trust and the support from our major existing investors. We are honoured that top-tier global institutions and strategic commercial investors have decided to back Partech Africa II.”
 
Partech Africa II can rely on a diversified and international set of investors with all major DFIs, including anchor investor KfW, the German Development Bank, joined by European Investment Bank (EIB), International Finance Corporation (IFC), member of the World Bank Group,  FMO, the Dutch entrepreneurial development bank,  Bpifrance Investissement, British International Investment (BII), DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and Proparco, as well as commercial investors such as South Suez and Bertelsmann.
 
Tidjane Dème, General Partner, Partech Africa: “With Partech Africa II, our investment thesis is actually to pursue the successful strategy of our first fund. We launched this strategy when less than $400 million were invested annually in equity on the continent. African tech companies are now raising $6 billion 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.”
 
In 2018, Partech announced the launch of its Africa-focused strategy with a first Fund of €125 million. 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 20 million+ 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. 
 
Building on the first fund’s learnings, Partech Africa will continue to lead and co-lead rounds with a larger ticket range ($1 million to 15 million), co-investing with the best regional and global players, playing an active role in bringing financial, strategic, and operational support to African founders. 
 
To execute on this strategy, the team, led by Cyril Collon and Tidjane Dème and comprised of Marie Benrubi, Sabrine Chahrour, Lewam Kefela, Matthieu Marchand, based in Dakar, Nairobi and Dubai, is expanding into new locations. It is augmented by Partech’s robust global platform with 3 members dedicated to Partech Africa: Romane Assou, Léa Gnaly and Alhou Maiga. This platform provides support across key functions such as Business Development & Portfolio Support, Founders Community, ESG, Finance, Compliance, and Legal.
 
This first close marks the launch of Partech Africa II and represents a solid vote of confidence in the African startup ecosystem. After years of continuous growth, the African continent continue to attract even more global attention and capital.