The World Bank’s private sector arm, the International Finance Corporation (IFC), wants to invest up to €25 million ($26.43) in Partech Africa Fund II (PAF II), a Paris-based venture capital firm.
In its disclosures, the IFC stated that it intends to acquire a holding of no more than 20%.
Another €15 million ($15.7 million) will be invested in future co-investment opportunities with the fund, according to a statement from the agency. According to IFC records, the PAF II will invest in “seed to Series D rounds, and follow-on rounds in top portfolio businesses.” The investment is in the process of being approved.
“The IFC’s planned investment in Partech Africa Fund is a €25 million equity investment, not to exceed 20% of the overall Fund commitment.” In addition, IFC has recommended a second co-investment envelope of up to €15 million on a delegated authority basis, to allow IFC to participate in future co-investment possibilities alongside the Fund,” according to the IFC.
“The project is expected to boost access to equity as well as operational value add for entrepreneurs across Africa, according to the IFC.” In comparison to most other emerging markets, Africa has limited access to venture capital. The project is also projected to boost innovation in key African markets by supporting market-disrupting digital business models, according to the IFC.
Wave, the U.S. and Senegal-based mobile money service provider; Tugende, a Ugandan mobility-tech firm; and Trade Depot, a Nigerian and U.S.-based company that connects consumer goods brands to retailers, are among Partech’s 15 investments in nine African countries.
The PAF II will provide much-needed capital to continent-wide tech startups in their early and growth stages.
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