Uncap, a venture capital firm with a mission to support small and medium-sized enterprises (SMEs) in Africa, has launched a USD 33 million growth fund aimed at addressing the capital challenges faced by early-stage businesses across the continent.
This initiative is designed to provide non-dilutive, revenue-based financing, offering a flexible alternative to traditional equity or debt models. The approach allows SMEs to scale without relinquishing ownership or taking on significant financial risk.
The fund, valued at approximately KSh 4.3 billion, will focus on high-potential businesses in critical sectors such as agriculture, logistics, climate resilience, financial inclusion, and trade. SMEs, which account for around 90% of African businesses, often face significant hurdles in securing funding due to inefficient capital markets and limited access to investors. Uncap’s new fund aims to bridge this gap, providing businesses with the tools they need to thrive in underserved markets.
Uncap Managing Partner Esther Ndeti emphasized the fund’s role in redefining SME financing. She highlighted that the inefficiencies in capital markets and the lack of visibility for SMEs have hindered their ability to access necessary funding. The fund, according to Ndeti, will empower African businesses to contribute to sustainable economic growth.
Building on Uncap’s three-year track record of championing innovative financing solutions, the new growth fund seeks to deepen its impact by filling capital gaps for early-stage SMEs. Uncap has already attracted backing from prestigious institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation.
Read also: TLcom Capital Raises $154 Million for Early-Stage Startups in Africa.
Furthermore, the firm will collaborate with key partners like SAIS, an ag-tech initiative funded by the German Federal Ministry for Economic Cooperation & Development, and O-Farms, a circular agriculture program supported by the IKEA Foundation. These partnerships aim to further drive growth in the SME landscape.
In addition to the fund, Uncap has separated its financial operations from its proprietary technology platform, Level. The platform, designed as a stand-alone SaaS solution, simplifies investment management for funders and accelerators across Africa. By doing so, Uncap intends to expand its tech-driven investment support services while focusing on delivering customized financing options for African businesses.
Uncap CEO Franziska Reh, along with Ndeti, is leading this initiative, which not only promises to provide SMEs with vital resources but also aims to set new standards in innovation and inclusion within the industry.
