LoftyInc Capital Secures $43M to Back Early-Stage African Startups

LoftyInc Capital Secures $43M to Fuel African Startups at Critical Growth Stages

LoftyInc Capital has reached the first close of its third and largest fund to date, setting its sights on late-seed and Series A startups across Africa. With a strong portfolio that includes Flutterwave, Moove, Reliance Health, TalentQL, OmniRetail, and Thndr, the firm aims to bridge the funding gap that many African startups face when scaling beyond the seed stage.

Backed by leading development finance institutions such as Proparco, the International Finance Corporation (IFC), Dutch development bank FMO, AfricaGrow, and First Close Partners, the fund has also attracted investments from Anava Funds of Funds, Egypt’s MSMEDA, European family offices, and high-net-worth African investors.

“This investment will provide critical seed-stage equity financing to tech startups across Africa, including underrepresented markets like Francophone Africa,” said Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC. “The Alpha Fund will play a key role in strengthening Africa’s venture capital ecosystem and creating a pipeline of companies that can attract larger, later-stage investors.”

Bridging the Series A Gap

Historically focused on pre-seed and seed-stage investments, LoftyInc is shifting its strategy as African startups struggle to secure Series A funding.

“At the pre-seed and seed stage, there’s a lot of excitement, but Series A comes with tougher scrutiny from investors,” said LoftyInc’s Founder and Managing Partner, Idris Ayodeji Bello. “Our goal is to step in early and help startups successfully navigate that transition.”

With global venture capital funding tightening, this strategic focus could also provide LoftyInc with quicker exit opportunities to Series A investors like TLCom and Partech. The firm already has 14 exits under its belt, including early investments in Flutterwave, Appruve, and Reliance Health.

Expanding Across Africa

While LoftyInc initially concentrated on Nigeria, its latest fund takes a broader Pan-African approach. At least 30% of the capital will be deployed in East Africa, North Africa, and Francophone Africa, where LoftyInc has already invested in startups like Ejara, Chefaa, and Gahez Market.

The firm remains sector-agnostic, backing startups in healthtech, retail, deep tech, and artificial intelligence. To support this expansion, LoftyInc has strengthened its leadership team with Mariam Kamel and Kevin Simmons as new general partners, bringing expertise from investment banking and venture capital. Meanwhile, Marsha Wulff and Michael Oluwagbemi will continue managing previous funds.

Backing the Next Generation of African Innovators

LoftyInc has built its reputation by investing in African entrepreneurs who drive transformative, tech-driven solutions. "Our past funds were largely backed by African professionals and seasoned entrepreneurs who contributed not just capital, but also industry expertise and networks," Bello noted.

“Despite today’s tough fundraising climate, we’re excited to surpass our first-close target. With new institutional investors onboard and strong commitments from existing backers, we’re well-positioned to scale our vision: empowering Afropreneurs to build Africa’s future economy.”