LoftyInc Secures $43M to Back Africa’s Next Big Startups

LoftyInc Capital has closed the first round of its third fund, securing $43 million to support late seed and Series A startups across Africa. The firm, known for backing Flutterwave, Moove, and Reliance Health, is shifting focus to help startups bridge the gap between early funding and scaling.

The newly launched LoftyInc Alpha fund has gained support from top institutional investors, including Proparco, the International Finance Corporation (IFC), Dutch development bank FMO, and AfricaGrow. It has also attracted investment from Anava Funds of Funds, Egypt’s MSMEDA, European family offices, and several African high-net-worth individuals.

According to Farid Fezoua, Global Director for Disruptive Technologies at IFC, “This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa. 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.”

Bridging the Series A Gap

LoftyInc has traditionally focused on pre-seed and seed-stage startups. However, as African startups struggle to secure Series A funding, the firm is stepping in to ease this transition. “At pre-seed and seed, there’s a lot of hype, but by Series A, the questions investors ask are very different. Our goal is to come in at seed, but our mandate is to help you get to Series A,” said Idris Ayodeji Bello, Founder and Managing Partner of LoftyInc Capital.

This shift comes as venture capital funding for African startups slows, mirroring global trends. By supporting startups at this stage, LoftyInc not only helps them survive but also positions itself for quicker exits through larger Series A investors like TLCom and Partech. The firm has already recorded 14 successful exits, including from Flutterwave and Reliance Health.

Expanding Across the Continent

Having started in Nigeria, LoftyInc has now expanded its focus across Africa. At least 30% of the new fund will be deployed in East Africa, North Africa, and Francophone Africa, where it already supports startups like Ejara, Chefaa, and Gahez Market.

The firm has also strengthened its leadership team, adding Mariam Kamel and Kevin Simmons as general partners. Meanwhile, Marsha Wulff and Michael Oluwagbemi will continue managing LoftyInc’s previous fund.

Bello sees this fund as a major step forward. “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.”

With its latest fund, LoftyInc is poised to shape the future of Africa’s startup ecosystem, ensuring that more entrepreneurs get the capital they need to thrive.