Janngo Capital, a Pan-African venture capital firm known for its focus on diverse founders and underrepresented regions, has closed its second fund at €73 million ($78 million), surpassing its target by more than 20%. This oversubscribed round is a significant milestone for the firm, which set out to mobilize capital to support startups across the African continent, especially in sectors like healthcare, logistics, financial services, and agritech.
Founded by Fatoumata Bâ, Janngo Capital has structured its second fund to specifically back startups that support gender equality and diversity in leadership, along with those based in Francophone Africa. “Africa accounts for 17% of the global population, yet it receives only about 1–2% of global venture capital funding,” said Bâ. “This imbalance underscores the need for targeted investment in regions and among founders that traditionally have had less access to funding.” By securing investment commitments from leading institutional and development finance investors, Janngo Capital is set to expand its portfolio across undercapitalized regions and into female-led and female-founded startups, a core tenet of its investing philosophy.
Strategic Backing from Global and African Investors
This second fund has attracted an array of global institutional backers, notably including the African Development Bank Group (AfDB), the European Investment Bank (EIB), and the International Finance Corporation (IFC), as well as the U.S. International Development Finance Corporation (DFC). These anchor investors were joined by several others with an African investment mandate: the Mastercard Foundation Africa Growth Fund, Tunisian fund of funds ANAVA, and Ashesi University’s endowment fund based in Ghana. The diverse slate of contributors highlights a coordinated interest in Africa’s startup ecosystem, with development finance institutions playing a prominent role.
For global institutional investors, Africa’s startup landscape presents both opportunities and unique challenges. Development finance institutions like the DFC and IFC have been key players in bolstering Africa’s entrepreneurial ecosystem, often through capital support to local venture funds targeting early- to growth-stage companies. Still, local participation from African institutional investors remains comparatively limited — a gap that Janngo Capital is actively working to close. “Attracting private African limited partners not only builds confidence for foreign investors but also helps lay the groundwork for a sustainable capital ecosystem within Africa itself,” said Bâ.
Demonstrating Returns Through Early Exits and Impact Investments
As African venture capital markets mature, VCs must demonstrate commercial success to draw in a larger base of local investors, including pension funds and endowments. Janngo Capital has been making a case for its viability with notable exits such as last year’s sale of its stake in the Tunisian expense management platform Expensya to Medius, a Swedish accounts payable automation provider. This transaction yielded an impressive internal rate of return (IRR) of 48%, marking one of the more successful exits in the North African startup space to date.
Alongside financial returns, Janngo Capital prioritizes impact investing. Its commitment to supporting female-led startups has translated into a portfolio in which over half of its companies are either founded or led by women, including Nigerian B2B e-commerce platform Sabi, which has seen significant growth under female leadership. Bâ noted that this approach not only addresses the disparity in funding access for female entrepreneurs but also helps validate the investment thesis that gender-diverse teams can deliver strong performance. “Africa has the world’s highest rate of female entrepreneurship, yet only a fraction of VC capital flows to female founders,” she added. “Our fund demonstrates that diverse teams are equally capable of driving meaningful growth, particularly in high-impact sectors.”
Prioritizing Francophone Africa and Regional Diversity
With nearly 67% of its portfolio companies based in Francophone Africa, Janngo Capital is one of the few venture capital firms to concentrate its investment in this region. This geographic focus has allowed Janngo to tap into an underrepresented startup community, where limited access to funding has stymied growth in otherwise promising ventures. Portfolio companies like Expensya in Tunisia, agritech company YoLa Fresh in Morocco, and fintech startup Djamo in Côte d’Ivoire are examples of Janngo’s regionally-focused investments.
According to Bâ, Janngo’s second fund will enable the firm to broaden its reach to include 25–40 companies, up from its initial target of 25, reflecting the increased fund size. This expansion aligns with Janngo’s aim of taking minority stakes — between 15–30% — in early-stage to Series B rounds, where the firm’s support can significantly influence a company’s growth trajectory.
A Hands-On Approach to Venture Support
Janngo Capital differentiates itself through a hands-on approach to portfolio management. With operational hubs in Abidjan, Mauritius, Tunis, and Paris, the firm has built a team of operating partners who specialize in technology, sales, marketing, and ESG. This strategic support is aimed at helping portfolio companies scale effectively. “We are incredibly hands-on, providing assistance on everything from product-market fit to market expansion strategies,” said Bâ. “For early-stage companies, this kind of tailored support can be instrumental in reducing risks and helping them grow sustainably.”
As Africa’s startup ecosystem faces challenges around infrastructure and talent development, Janngo’s operational support model seeks to bridge some of these gaps. The firm’s commitment to diversity and regional focus sets a precedent for other investors interested in African markets but wary of risks that can arise without active involvement.
Janngo Capital’s success with Expensya’s exit and its significant backing of Sabi have raised its profile as a frontrunner in Africa’s venture capital scene. The Expensya exit, reportedly valued at around $120 million, underscores Janngo’s commitment to taking a “conviction-led” approach to deal-making, securing positions early and preparing companies for potential acquisition or further growth. “While we’re pleased with our early exits, the real test will be in how well our portfolio matures over the next decade,” said Bâ. “In an environment where many firms are turning to partial exits for liquidity, we aim to balance these near-term opportunities with long-term value creation.”
As Janngo Capital embarks on deploying its €73 million fund, its emphasis on gender and regional diversity continues to align with Africa’s development goals, drawing new attention to the value of inclusive investment strategies. In doing so, the firm not only reaffirms its financial acumen but also exemplifies a vision for inclusive, sustainable growth across the continent’s tech and startup landscape.