LoftyInc Capital announces $43m first close of its new fund
The LoftyInc Alpha Fund seeks to back Africa’s most promising tech startups.
** Grow your business in 2025 with Africa Private Equity News: Explore our advertising options **
LoftyInc Capital Management has announced the $43 million first close of its new fund. The LoftyInc Alpha Fund seeks to back 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 investors, with investments in prominent startups such as Flutterwave, Andela, Wave Mobile Money, RelianceHealth, Thndr, OmniRetail, and Moove.
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 prioritise sectors such as financial services, retail enablement, logistics, healthcare, climate-tech, and artificial intelligence.
The first close of the Alpha Fund attracted a diverse 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 finance institution investors include FMO; the Dutch Good Growth Fund (DGGF); Proparco, the International Finance Corporation (IFC); and AfricaGrow, a fund of funds managed by Allianz Global Investors and advised by DEG Impact.
The fund also benefits from commitments by returning limited partners such as First Close Partners, a US-based family office. Furthermore, several African high-net-worth individuals and European family offices joined.
LoftyInc’s team comprises of the managing partner Idris Ayodeji Bello and general partners Mariam Kamel and Kevin Simmons.
Bello commented on the new fund: “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 institutionalising 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.”
“This fund is a testament to our dedication to backing transformative businesses across the continent. We are tremendously proud of achieving this first close milestone, backed by investors who have confidence in our mission and ability to identify category leaders that will drive innovation and impact while delivering strong returns,” said Kamel.
“This is a really exciting vehicle for African technology. Not only are we investing in great businesses with very strong growth DNA, but we have designed this fund team to co-build these businesses with our founder partners,” said Simmons.
FMO's Marieke Roestenberg added, “The LoftyInc team has demonstrated deep local expertise, a track record, and networks across Africa. We are glad to support its effort to institutionalise its VC platform alongside other investors and further promote tech entrepreneurship in the region.”
“This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa,” said Farid Fezoua, global director for disruptive technologies, services, and funds at IFC. “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 programme, which supports early-stage entrepreneurs, and the ScaleX programme, which supports female founders.”
“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,” said Orsolya Farkas, head of funds and equity at DGGF.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here