LoftyInc Capital closes first Pan-African seed fund at $43m

LoftyInc Capital Management (LoftyInc), has announced the first close of $43 million for its new LoftyInc Alpha Fund, a late-seed focused investment vehicle that will drive growth for Africa’s most promising tech startups across key geographies, including Nigeria, Egypt, Kenya, and Francophone Africa.

Operating out of Nigeria, Egypt, and Kenya, LoftyInc is one of the African VC ecosystem’s earliest and most successful investors, with early investments in prominent startups such as Flutterwave, Andela, Wave Mobile Money, RelianceHealth, Thndr, OmniRetail, and Moove. With over a decade of venture capital experience, LoftyInc has consistently delivered strong returns to its investors while advancing Africa’s position as a growing hub for tech innovation.

The Alpha Fund is designed to build on insights from previous funds. It will focus on seed investments that enable entrepreneurs to build resilient companies and achieve scalable growth. The Fund will prioritize sectors such as financial services, retail enablement, logistics, healthcare, climate tech, and artificial intelligence, reflecting the diverse opportunities across the African continent.

The first close of the Alpha Fund attracted a diverse and strategic investor base, including commitments from Middle Eastern and African sovereign wealth funds such as Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA), Tunisia’s Anava Fund of Funds, and others.

Development Financial Institutions (DFI) investors include FMO (the Dutch Entrepreneurial Development Bank), the Dutch Good Growth Fund (DGGF), Proparco with FISEA, and AfricaGrow, a Fund of Funds managed by Allianz Global Investors and advised by DEG Impact GmbH, as well as the International Finance Corporation (IFC).

Idris Ayodeji Bello, Managing Partner, LoftyInc Capital Management: ''Our previous funds were backed primarily by African professionals and experienced entrepreneurs who not only provided capital but also leveraged their networks and industry expertise to help startups thrive - establishing the foundation for institutionalizing our investment approach. In an exceptionally challenging fundraising climate, we are thrilled to have surpassed our first-close target, attracting new institutional investors while reaffirming the commitment of our existing backers. This latest raise positions us to scale our vision: empowering Afropreneurs who build transformative, tech-driven solutions for Africa’s everyday economy.''

The Fund also benefits from commitments by returning limited partners such as First Close Partners, a U.S.-based family office that invests in top-performing venture funds led by underrepresented managers globally. Furthermore, several African high-net-worth individuals (HNIs) and European family offices joined, showcasing a strong alignment of regional and global investors who share a vision of accelerating Africa’s tech ecosystem.

Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC: ''This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa. The Alpha Fund will help develop the venture capital ecosystem across Africa and create a pipeline of investment projects that can attract later-stage investors to the region, which is underserved by global venture capital. The project is part of the IFC Startup Catalyst program, which supports early-stage entrepreneurs, and the ScaleX program, which supports female founders.''

Orsolya Farkas, Head of Funds and Equity, DGGF: ''We are excited to partner with the team from LoftyInc as they continue to build Africa’s technology ecosystem through their Alpha Fund. Their ability to identify and nurture early-stage companies across multiple African markets aligns with DGGF’s mission in fostering entrepreneurship in emerging markets. This investment reflects our commitment to driving sustainable development and creating opportunities for Africa’s growing tech talent.''

www.loftyinc.vc

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