TIDE Africa Fund, an active fund managed by TLcom and which has raised $150 million for Africa-focused startups, has today secured an additional $31 million to continue its work in the region. The funding brings its sub-Saharan Africa fund to $71 million.
UK-based CDC, International Finance Corporation (IFC) as well as South Africa’s Sango and Belgium’s BIO participated in the new investment.
In a statement sent to BusinessDay, TLcom said the funding will enable it to make additional five to six investments in pan-Africa companies from Seed to Later stage over the next 12 to 18 months. It would also ensure capital resources for follow-on rounds for TLcom’s existing portfolio.
“The investment in TLcom provides a critical foundation in our endeavour to plug the funding gap for early-stage companies and bolster entrepreneurship across Africa,” said Nick O’Donohoe, chief executive officer of CDC, the UK’s publicly owned impact investor and largest investor in the Fund. “CDC is excited to work with TLcom, leveraging technology and innovation to intervene in critical sectors such as education or agriculture and helping to address important consumer and business challenges.”
Since it closed its first deal in 2017, TIDE Africa has been one of the most active funds operating in sub-Saharan Africa. It currently has six companies in its portfolio, including Andela, Kobo360, Twiga Foods, Ajua, Terragon Group, and uLesson.
Maurizio Caio, Nairobi-based founder and managing partner at TLcom said the investment gives Africa VC space the time to graduate into a world-class asset class that can generate massive returns.
“Attracting international investment from such renowned backers into the African VC space reflects the recognition of the work the TLcom team has already achieved in connecting some of the continent’s strongest entrepreneurs with the capital they need to scale,” Caio said.
Launched in 1999, TLcom currently has in excess of $200 million under management across primary and secondary funds. It also boasts of a highly experienced team including Nigeria’s former minister of ICT, Omobola Johnson who is now a senior partner, Andreata Muforo, Kenyan-based partner, and Ido Sum based in the UK.
“We are bullish on supporting and investing in tech-enabled African companies due to the opportunities for value generation that they provide,” Omobola Johnson said. “We are known for being an entrepreneur-led VC firm which values Africa-centric innovation, strong leadership teams and businesses who are solving real challenges in the market.”
