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Monday, 11 April 2022

Algebra lands USD 15 mn from IFC for new fund

The IFC has committed USD 15 mn to Algebra’s second tech fund: The International Finance Corporation (IFC) has confirmed that it will pour USD 15 mn into Algebra Ventures’ USD 90 mn second tech fund, it said in a statement. The investment was approved by the international lender’s board in December, according to a disclosure.

The new fund will target investments in some 20 African tech startups, with a focus on Egypt, the statement read.

More where that came from? The agreement includes “a separate co-investment envelope of up to USD 15 mn,” according to the IFC disclosure.

Who else is on board? The European Bank for Reconstruction and Development (EBRD) is also committing USD 15 mn to the fund. Algebra is raising funds from a who’s who of limited partners thanks to the success of its first USD 54 mn fund, in which the IFC invested USD 10 mn back in 2016.

Ventures II: Announced in April last year, Algebra said the new fund would eventually be worth USD 90 mn and make equity venture capital investments in early-stage tech companies. Algebra partner Omar Khashaba previously told us that the VC’s second fund will focus on Egypt with some allocations for sub-Saharan Africa.

This marks the IFC’s third investment in Egypt in recent months: The lender poured USD 20 mn into private equity firm Ezdehar’s first close of its Mid-Cap Fund II (EMF II), and directly invested USD 5 mn in Algebra-backed social commerce startup Brimore.

The IFC likes the local startup scene: “With its young, tech-savvy population and large market, Egypt's entrepreneurs are perfectly poised to drive change in the country's economy — with the right support,” said IFC Egypt Country Officer Yasmine El-Hini. Catch our recent Morning Routine interview with El Hini here.

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