Partech Raises $262M to Invest in African Tech Companies

Partech has closed its second Africa fund at 245 million euros (about $262 million).

Partech Africa II is designed to support the next generation of entrepreneurs across the continent, and the fund closed above its target fund size, the venture capital firm said in a Tuesday (Feb. 7) announcement.

“We launched this strategy when less than $400 million were invested annually in equity on the continent,” Partech General Partner Tidjane Deme said in the announcement. “African tech companies are now raising $6 billion annually.”

The fund will build on the success of the first Partech Africa fund, with the Partech team leading and co-leading rounds with checks from $1 million to $15 million and providing strategic and operational support, according to the announcement.

The growing potential of Africa’s tech startup scene, buoyed by a surge in FinTech funding, remains unmatched anywhere in the world, Partech General Partner Cyril Collon told PYMNTS in an interview posted Jan. 26.

“If you look at different types of [key performance indicators (KPIs)] and compare them with Southeast Asia and Latam, Africa is [way ahead of the curve],” Collon said at the time. “It took twice less time there to get to 500 first deals in a year [and] twice less time to get the first five unicorns.”

While the FinTech sector netted the most VC funding in Africa in 2022, logistics and supply chain, HealthTech, AgriTech and EdTech are also witnessing unprecedented growth, Collon said.

Two days earlier, on Jan. 24, Partech published a report that showed that financing for startups in Africa rose 8% last year compared to 2021 even as global VC funding was down 35%.

“Our report revealed the African tech ecosystem showed great resilience, as more investors have doubled their commitment to the continent,” Deme said at the time in a news release.

Startups in Africa and the Middle East deliberately try to cultivate resilience when launching a business because they find funding is tougher to come by than it is in other regions, Global Ventures Partner Said Murad told PYMNTS in an interview posted in December.

“From a founder perspective, the focus on building sustainable-first businesses is not something new for emerging markets,” Murad said at the time.

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