LoftyInc Capital Management has announced the first close of $43m 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).
Managing Partner Idris Ayodeji 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 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.”
“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.” – Mariam 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.” – Kevin Simmons
FMO’s Marieke Roestenberg adds, ” The LoftyInc team has demonstrated deep local expertise, a track record, and networks across Africa. We are glad to support its effort to institutionalize 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 program, which supports early-stage entrepreneurs, and the ScaleX program, which supports female founders.
First Close Partners commented: “We at First Close Partners were drawn to invest in Lofty because of its pioneering ecosystem cultivation efforts in Africa, its network of best-in-class local founders, and its diverse Partnership. Our fund-of-funds invests in VC firms around the globe, and we feel that Lofty is uniquely positioned to take advantage of the African continent’s vibrant entrepreneurial ecosystem, high growth potential, and attractive valuations.”
“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.” Orsolya Farkas – Head of Funds and Equity (DGGF).
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