Mubadala and Bpifrance to co-invest in Africa’s largest technology VC fund

Mubadala Investment Company and France’s national investment bank Bpifrance will jointly invest in global technology investment company Partech’s latest Africa-focused venture capital fund, Partech Africa II, as it looks to build its portfolio of assets globally.

The Partech Africa II fund, which has reached a hard cap of €280 million ($304.4 million), is the largest venture capital fund dedicated to technology start-ups in Africa, the companies said.

The commitment by Mubadala and Bpifrance is the first investment made through their €350 million Africa co-investment partnership that was announced in June 2021.

“Africa is one of the world’s fastest-growing markets for venture capital,” Andres Rodenas de la Vega, head of Mubadala’s France Investment Programme, said.

The new fund aims to provide between $1 million and $15 million initial tickets from seed to series C rounds.

As part of the Africa co-investment partnership, Mubadala and Bpifrance aim to put capital to use through fund and direct investments, with a focus on high-growth African start-ups, small and medium enterprises and mid-market companies.

Bpifrance is also an investor in Partech’s first Africa fund, which achieved a final close of €125 million in January 2019.

Launched in 2018, Partech Africa I comprises a portfolio that operates in 27 countries on the continent. The portfolio attracted more than 10 per cent of the VC investments in Africa in 2021 and 2022.

Isabelle Bebear, Bpifrance’s head of European and international affairs, expressed happiness about the deal.

“We are pleased and proud not only to renew our support to Partech for this second pan-African fund that will address the continent’s growing technological challenges, but [also] to do so alongside, Mubadala, another historical partner,” she said.

Mubadala is investing across key locations and new economic sectors, aiming to boost its footprint and build its portfolio of assets globally.

“Any investment venture would be based on the attractiveness of the opportunities that would be identified in the key markets we are focused on and not on geopolitical considerations,” Khaldoon Al Mubarak, group chief executive and managing director of Mubadala, said in Abu Dhabi last month.