LoftyInc Capital Raises $43M to Fuel African Startup Growth

LoftyInc Raises $43M for African Startups. LoftyInc Capital, one of Africa’s most prominent venture capital firms, has successfully raised $43M in the first close of its third fund, LoftyInc Alpha. This marks a significant step forward in its mission to support African startups.

Known for backing early successes like Flutterwave, Andela, and Wave, LoftyInc is now shifting its focus to late-seed and Series A funding rounds. The goal is to help startups across Africa overcome the difficult leap from seed funding to Series A, a stage where many promising ventures often stumble.

The $43 million fund, which represents LoftyInc’s largest yet, brings together a diverse group of investors. These include sovereign wealth funds from Africa and the Middle East, such as Egypt’s MSMEDA and Tunisia’s Anava Fund, as well as development finance institutions like FMO, Proparco, IFC, and AfricaGrow.

High-net-worth individuals from Africa and European family offices also contributed. This broad support highlights growing confidence in LoftyInc’s ability to nurture startups in key markets like Nigeria, Egypt, Kenya, and Francophone Africa.

LoftyInc Capital has been a key player in Africa’s startup ecosystem for over a decade. Starting as an angel network, it evolved into a structured venture capital firm with an impressive track record. Its first fund launched in 2017 with just $1.1 million but delivered strong returns by investing in companies like Flutterwave and Reliance Health.

By 2021, LoftyInc expanded its reach with a $14.2 million second fund that took a pan-African approach. Now, with $43 million for African startups in its third fund, the firm is doubling down on its commitment to scaling businesses across the continent.

The new fund will focus on sectors that drive Africa’s “everyday economy,” including fintech, logistics, health tech, retail, climate tech, and deep tech. LoftyInc’s portfolio already includes notable names like Moove (a vehicle financing platform backed by Uber), Thndr (an Egyptian stock trading app), and OmniRetail (a B2B e-commerce platform). With this fresh capital injection, the firm aims to help more startups not just survive but thrive.

A key challenge LoftyInc aims to address is the funding gap between seed and Series A stages. Many African startups struggle at this critical juncture due to declining ticket sizes at Series A levels, a trend highlighted by recent reports. To tackle this issue, LoftyInc has expanded its leadership team by adding experienced professionals like Mariam Kamel and Kevin Simmons as general partners. Their expertise in investment banking and venture capital will be instrumental in supporting startups through this challenging stage.

LoftyInc Capital raises funds not only to provide financial backing but also to offer strategic support. The firm leverages its extensive networks and operational expertise to connect startups with co-investors and other resources they need to scale successfully. With over 200 investments and 14 exits under its belt, LoftyInc has built a reputation as more than just a source of capital, it is a partner in growth.

This $43M for African startups underscores the growing potential of the continent’s entrepreneurial ecosystem. By focusing on late-seed and Series A funding rounds, LoftyInc is positioning itself as a bridge for startups aiming to scale their operations and make a lasting impact on Africa’s economy.

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