TLcom raises $70m to progress African expansion

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TLcom raises part of $150m in the second version of its outlay

By Jeph Ajobaju, Chief Copy Editor

Venture capital firm TLcom has just secured the first tranche of $70 million of the $150 million it plans to raise in the second version of its TIDE Africa Fund floated in 2020.

TLcom focuses on Africa and plans to use the new fund to strengthen its presence in East and West Africa and to expand to Egypt.

The funding round was led by Allianz insurer, through its joint venture, AfricaGrow, DEG Impact (German Investment Corporation) as well as new and returning investors including Bertelsmann, King Philantropies, TLcom, and FBNQuest.

Other participants included Major DFIs such as CDC Group (UK development finance institution), IFC, Proparco, and Swedfund.

TLcom says it plans to include another 20 early-stage firms in its portfolio, with ticket sizes ranging from $500,000 to $15 million across Seed and Series A stages.

TLcom Founder and Managing Partner Maurizio Caio, based in Nairobi, said African tech has secured more high-value financing rounds, exits and M&As than ever before and this is only just the beginning since the closing of its previous funds.

“As we partner with some of the world’s leading global investors for our new fund, this is not only an endorsement of the massive value generation upside on the continent, but also of our proven track record in identifying and supporting entrepreneurs successfully winning and redefining Africa’s key verticals,” he said.

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Other stakeholders commented as follows:

Abhinav Sinha (CDC Director and Head of Technology and Telecom)

“We are excited to expand our partnership with TLcom. The fund’s focus on business fundamentals coupled with deep understanding of local context has been instrumental in identifying market shaping businesses and innovative entrepreneurs in Africa,” he said, per reporting by Nairametrics.

“We are confident that our continued relationship will further amplify TLcom’s ambitions to accelerate impact to consumers and businesses across Africa’s diverse markets.”

Martin Ewald (Lead Portfolio Manager Impact Investments, AfricaGrow/Allianz Global Investors)

“One thing is clear to those who are close to the African VC market: it will grow. We at AfricaGrow believe much more is possible in terms of capital influx into the continent especially in the VC space.

“There is considerable upside for everyone if investment activities accelerate even more: African businesses can boost productivity, gain in terms of competitiveness and technological edge and tens of millions more Africans could gain stable employment while generating returns for investors.”

Ijeoma Agboti (FBNQuest Funds Managing Director)

“FBNQuest Funds is pleased to have participated in the first close of TLcom’s second edition of the pan-African Tech Fund (TIDE Africa Fund II) following its first close commitment to the manager’s maiden fund (TIDE Africa Fund I).

“Our decision to back TLcom in its second fund was based on the fund manager’s demonstrated track record of investing in high growth tech companies with strong business fundamentals and implementing value creation strategies that improve the operations and profitability of these companies.

“We remain confident that TLcom is well-positioned to continue to deliver on our shared objective to provide capital, the required operational support and access to international partnerships to technology companies in the Africa region through the TIDE Africa Fund II.

“At FBNQuest Funds, we recognise the transformational role that technology must play in narrowing the gap between industries in Africa and the rest of the world, and we are keen to play a pivotal role in enabling this growth.”

About TLcom

TLcom was founded in 1999 with offices in Lagos, Nairobi, and London. It has $350 million of venture capital (VC) assets under management in Africa and Europe.

It announced in February 2022 the closing of $71 million TIDE Africa Fund dedicated to technology and innovation in Africa at all stages of VC.

TLcom portfolio includes Twiga Foods, Andela, uLesson, and Kobo360; and it has successful completed Africa VC exits with Upstream, acquired by Actis’ and Movirtu, acquired by BlackBerry.

TIDE Africa Fund delivers capital as part of a larger strategic, operational and financial support to entrepreneurs.

Jeph Ajobaju:
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