The International Finance Corporation (IFC), the private sector arm of Work Bank, plans to make an equity investment of up to €25 million ($26.43) in the Partech Africa Fund II (PAF II) by the private equity firm. Paris-based venture Partech. The IFC said in the disclosures that it is considering a stake of no more than 20%. The agency said it will commit another 15 million euros ($15.9 million) for future co-investment opportunities alongside the Fund. PAF II will invest in “seed rounds to Series D and follow-on rounds in major portfolio companies,” according to IFC filings. The investment is pending approval. “IFC’s proposed investment in the Partech Africa Fund is an equity investment of up to €25 million, not to exceed 20% of the Fund’s total commitment. In addition, IFC has proposed a separate co-investment package of up to €15 million based on delegated authority, to facilitate IFC’s ability to participate in potential future co-investment opportunities alongside the Fund,” IFC said in the disclosure.
It is not immediately clear how much Partech was seeking to raise, as the venture capital firm, one of the largest in Africa, declined to share specific details of the fundraising with TechCrunch.
However, it is expected to be larger than Fund I, which closed at $143 million in 2019 and had the participation of the IFC and some other major institutions such as the European Investment Bank (EIB), the Dutch Development Bank ( FMO) and the African Development Bank Group: entities that are driving investment across the continent. The EIB and FMO also plan to invest in this round, with the latter also considering injecting up to €25m. PAF II will invest in early and growing technology startups across the continent, leveraging much-needed funding on the continent. Last year, startups in Africa raised between $4.3 billion and $5 billion, and while this was huge growth (nearly double) from the previous year, it was still marginal compared to other regions of the world. . Funds such as the PAF are aimed at closing this gap. “IFC anticipates the project to increase access to capital along with added operational value for startups across Africa. Access to venture capital in Africa remains low compared to most other emerging markets. The project is also expected to increase innovation in key markets in Africa by supporting market-disruptive digital business models,” the IFC said. “In markets where investee companies grow rapidly and become major market players, innovation at scale can have large impacts on a market by driving traditional players to innovate and introduce digital solutions or reduce market share. market share of traditional incumbents,” the agency said. Partech has 15 investments in nine countries in Africa, including Wave; a mobile money service provider based in the US and Senegal; Tugende, a Ugandan mobility technology company, and Trade Depot, a Nigerian and US-based company that connects consumer goods brands with retailers.