The international technology investment firm Partech has opened a new office in Lagos, is seeking to expand its team, and announced the final closing of its second Africa fund, Partech Africa II, with a hard cap of €280 million ($300 million+).
Partech Africa II reached its final closing at €280 million ($300 million+) after a successful first closing that was announced last year. Not only did top tier investors make their first commitments to the African VC ecosystem and the Partech Africa platform, but all major investors from its predecessor fund also participated.
Due to the oversubscribed final closing, new global institutional categories, including sovereign funds and pension funds from the Middle East and the US, have been drawn in. Along with the current early Partech Africa supporters, Orange, AXIAN Investment, and the African Development Bank Group (AFDB), it also includes new strategic investors, Africa Re and Dubai Future District Fund (DFDF).
A wide range of over forty international investors have supported the fund overall, including family offices, significant Development Finance Institutions (DFIs), and commercial investors like South Suez and Bertelsmann. The group of development finance institutions (DFIs) comprises impact investor DEG – Deutsche Investitions – und Entwicklungsgesellschaft mbH, Proparco, the Dutch entrepreneurial development bank, Bpifrance Investissement, the German Development Bank, the European Investment Bank (EIB), the International Finance Corporation (IFC), a World Bank Group member, and anchor investor KfW.
“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 honoured to get 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 to African tech.”
In order to support African companies and founders on their growth journeys in both local and international markets, Partech Africa II will intensify its strategy of investing throughout Africa. Initial tickets for Seed to Series C rounds will range from $1 million to $15 million. A real estate platform in Egypt, a payment orchestration startup in South Africa, and an e-commerce platform in Senegal are the three investments that the Fund currently has in its portfolio. Across the continent, the team hopes to amass a portfolio of more than 20 businesses.
“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,” added 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.”
Moreover, Partech Africa is actively seeking an Investment Analyst based in Lagos and a senior profile for “Portfolio Strategy & Operations” to spearhead value creation and exit building.
The announcement of Partech Africa II’s final closure coincides with a 50% decline in the number of investors participating in the African tech ecosystem, as evidenced by Partech’s most 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.”
