Venture Capitalist, TLcom Capital, has raised $154 million from investors to fund its expansion to Egypyt and invest more in startups tackling the continent’s challenges through innovation.
According to a statement on Monday, investors in the new funding round include the European Investment Bank, Allianz SE, and the Visa Foundation. Other investors in the company’s TIDE Africa Fund II include DEG Impact’s joint venture AfricaGrow and Bertelsmann.
The TLcom Capital TIDE Africa Fund II has already made its first investments in Cairo-based ILLA, a middle-mile logistics platform, and South Africa-based LittleFish, an e-commerce platform, according to the statement.
TLcom Capital also plans to deploy significant capital into female-founded African tech startups, similar to TIDE Africa Fund I, Maurizio Caio, founder and managing partner at the VC firm, said in an interview.
The capital raise may offer some relief to African technology and startup firms after VC inflows plunged last year. According to a recent report by the London-based African Private Capital Association, they fell 31 per cent in 2023 to $4.5 billion from a year earlier.
According to the report, economic headwinds including weak currencies and high inflation, prompted foreign investors to pull back from African economies.
Vice-president at the EIB, Ambroise Fayolle, said: “Across Africa, access to capital remains limited, especially for early-stage startups. Africa’s startup ecosystem has the potential to drive inclusive economic growth and foster positive social change, which the EIB is happy to support.”
