Uncap Launches USD 33 M SME Growth Fund in Africa

Munich and Nairobi-based Uncap has launched Unconventional Capital, a USD 33 M fund that provides non-dilutive, revenue-based financing to early-stage small and medium-sized enterprises (SMEs) across Africa.

Unconventional Capital will be collaborating with key partners, including SAIS, an ag-tech initiative funded by the German Federal Ministry for Economic Cooperation & Development (BMZ) and implemented by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH), and O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation.

The fund will be co-led by Uncap’s current investment principal, Ms. Esther Ndeti, and the chief executive officer, Ms. Franziska Reh, both of whom will serve as managing partners. The Fund has received support from global institutions like the Bill & Melinda Gates Foundation and the Bayer Foundation. The financial model, which emphasizes revenue-based financing over equity dilution, is anticipated to offer more flexible funding choices for African businesses dealing with early-stage challenges.

Since its establishment in 2019 and official launch in 2021, Uncap has financed early-stage African SMEs. With its revenue-based financing approach, Uncap emphasizes revenue-based financing over equity dilution and is anticipated to offer more flexible funding choices for African businesses dealing with early-stage challenges.