Partech, the global technology investment firm, has announced the successful final closing of its second Africa fund, Partech Africa II, at a hard cap of €280M ($300M+) to focus on seed to Series C investments.
This milestone is accompanied by the inauguration of a new office in Lagos as part of the firm’s expansion strategy, along with plans to recruit additional team members to bolster its presence on the continent.
After a robust first closing last year, Partech Africa II has achieved its final closing at €280M ($300M+), attracting major investors from its predecessor fund as well as top-tier investors making their inaugural commitment to the Partech Africa platform and the African VC ecosystem.
The oversubscribed closing has drawn support from a diverse group of over 40 international investors, including commercial investors, family offices, and major Development Finance Institutions (DFIs).
New categories of global institutions, such as US and Middle East pension funds and sovereign funds, have contributed to the fund, alongside strategic investors like Africa Re and Dubai Future District Fund (DFDF), joining existing supporters including Orange, AXIAN Investment, and the African Development Bank Group (AFDB).
General Partner at Partech, Cyril Collon expressed gratitude for the support received from investors, noting that almost all Fund I investors reinvested, with some doubling their commitment.
Mr Collon also highlighted the honor of gaining support from new strategic investors from the US, the Middle East, and Africa, many of whom are making their first foray into African Tech.
Partech Africa II aims to double down on its investment strategy across Africa, with initial tickets ranging from $1M to $15M on Seed to Series C rounds.
The fund already boasts investments in diverse sectors, including real estate in Egypt, payment orchestration in South Africa, and e-commerce in Senegal.
The team anticipates building a portfolio of over 20 companies across the continent.
General Partner at Partech, Tidjane Deme emphasized the firm’s expansion efforts, announcing the addition of senior investment officer Tito Cookey-Gam to the team to spearhead the Lagos office’s operations.
Mr Deme highlighted the strategic significance of Lagos, home to a significant portion of Partech’s portfolio, and emphasized the firm’s commitment to providing on-the-ground support for entrepreneurs.
In addition to the Lagos office opening, Partech Africa is actively recruiting senior profiles for “Portfolio Strategy & Operations” to drive value creation and exit building, as well as an Investment Analyst based in Lagos.
The announcement of Partech Africa II’s final closing comes amidst a challenging landscape, with a 50% decrease in the number of investors active in the African tech ecosystem as highlighted in Partech’s recent 2023 Africa Tech Venture Capital Report.
Mr Collon underscored the importance of anchoring rounds at all stages to enable the emergence of technology companies that will drive transformative value for African economies and shape global innovation.
“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”
