LoftyInc Capital has successfully closed the first round of its third fund, securing $43 million to invest in late-seed and Series A startups across Africa. The venture capital firm, known for backing high-growth startups like Flutterwave, Moove, Reliance Health, TalentQL, OmniRetail, and Thndr, aims to bridge the funding gap that African startups face as they scale.
The newly launched LoftyInc Alpha Fund—the firm’s largest to date—has attracted investment from major development finance institutions, including Proparco, the International Finance Corporation (IFC), Dutch development bank FMO, AfricaGrow, and First Close Partners. Additional investors include Anava Funds of Funds, Egypt’s MSMEDA, European family offices, and African high-net-worth individuals.
According to Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC, the fund will provide early-stage equity financing to African tech startups, particularly in emerging markets like Francophone Africa. Fezoua emphasized that the fund will help grow Africa’s venture capital ecosystem, creating a pipeline of startups that can attract later-stage investors.
LoftyInc, which initially focused on pre-seed and seed-stage investments, is now shifting gears to support startups in scaling to Series A—a stage where many African startups struggle to secure funding.
“At pre-seed and seed, there’s a lot of hype, but by Series A, investors ask different and tougher questions,” said Idris Ayodeji Bello, Founder and Managing Partner of LoftyInc Capital, in an interview with TechCrunch. “Our goal is to come in at seed, but our mandate is to help you get to Series A. We want to be the firm that gets startups over that hump.”
This strategic shift comes as African startups face a broader decline in venture capital funding, reflecting the global slowdown in tech investments. By focusing on startups poised for Series A, LoftyInc also positions itself for faster exits to larger investors, such as TLCom and Partech. The firm has already recorded 14 exits from early investments, including stakes in Flutterwave, Appruve, and Reliance Health.
To support this expanded focus, LoftyInc has strengthened its team by appointing Mariam Kamel and Kevin Simmons as general partners, both bringing extensive experience in investment banking and venture capital. Meanwhile, Marsha Wulff and Michael Oluwagbemi will continue managing LoftyInc’s previous fund.
While the firm initially focused on Nigeria, LoftyInc has gradually adopted a pan-African investment strategy. At least 30% of its new fund will be deployed across East Africa, North Africa, and Francophone Africa, where it has already backed startups like Ejara, Chefaa, and Gahez Market. It will also maintain a sector-agnostic approach, with key focus areas including healthtech, retail, deep tech, and artificial intelligence.
Reflecting on the success of the fund’s first close, Bello highlighted LoftyInc’s commitment to fostering African entrepreneurship.
“Our previous funds were backed by African professionals and experienced entrepreneurs who provided not just capital but also networks and expertise to help startups grow,” he said. “In an exceptionally challenging fundraising climate, we are thrilled to have exceeded 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 to build transformative, tech-driven solutions for Africa’s everyday economy.”
