Abu Dhabi’s Mubadala Investment Company and France’s national investment bank Bpifrance have joined forces to invest in Partech Africa II, the latest venture capital fund by global technology investment company Partech. This strategic move aims to strengthen their global asset portfolio, marking the inaugural investment through their €350 million Africa co-investment partnership, unveiled in June 2021.
The Partech Africa II fund, now capped at €280 million ($304.4 million), stands as the largest venture capital fund exclusively dedicated to supporting tech start-ups in Africa. This milestone was revealed in a joint statement by the entities on Wednesday.
Andres Rodenas de la Vega, head of Mubadala’s France Investment Programme, emphasized the burgeoning potential of Africa as one of the fastest-growing markets for venture capital. He expressed enthusiasm about the collaboration with Bpifrance and the prospect of further joint investments in the future.
The newly established fund intends to provide initial investments ranging from $1 million to $15 million for start-ups, covering the Seed to Series C rounds. As part of their Africa co-investment partnership, Mubadala and Bpifrance plan to deploy capital through fund and direct investments, focusing on high-growth African start-ups, small and medium enterprises, and mid-market companies.
Bpifrance, already an investor in Partech’s initial Africa fund that closed at €125 million in January 2019, underlines its commitment to addressing Africa’s technological challenges through this renewed collaboration. Partech Africa I, launched in 2018, boasts a portfolio operating in 27 countries across various sectors, including FinTech, HealthTech, logistics, and EdTech, attracting over 10% of VC investments in Africa in 2021 and 2022.
Isabelle Bebear, Bpifrance’s head of European and international affairs, expressed pride in partnering with Partech once again and collaborating with Mubadala, a historic ally.
Mubadala’s ongoing strategy involves investing across key locations and new economic sectors globally. Group Chief Executive Khaldoon Al Mubarak emphasized that their investment ventures are driven by opportunities rather than geopolitical considerations. The company anticipates deploying capital in artificial intelligence and space technology, following recent investments in India’s Manipal Health Enterprises and a $1 billion partnership with Goldman Sachs for private credit opportunities in the Asia-Pacific region.
In December, Mubadala, in collaboration with Abu Dhabi’s Aldar Properties and Ares Management, jointly invested $1 billion in a new European private property credit platform to capitalize on opportunities in key markets within the region.
