Uncap has launched Unconventional Capital, a EUR30 million (US$33 million) fund aimed at supporting early-stage African SMEs.
This fund will provide non-dilutive, revenue-based financing, giving businesses more flexibility without giving up equity.
Since 2019, Uncap has invested in African SMEs through its alternative financing model. This new fund, Unconventional Capital, will collaborate with key partners to unlock growth opportunities for businesses.
The fund’s partners include SAIS, an agri-tech initiative funded by the German Federal Ministry for Economic Cooperation & Development (BMZ), and O-Farms, a circular agriculture program backed by the Ikea Foundation.
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Backing from Global Institutions
The fund has attracted backing from prominent global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation.
This support highlights growing confidence in Uncap’s innovative financing approach. By focusing on revenue-based financing, Unconventional Capital offers a more flexible funding model to African SMEs. It aims to solve the challenges that many businesses face in raising capital.
Uncap has also separated its financial operations from its proprietary technology platform, Level, to streamline investment management for funders and accelerators across Africa. This will allow Uncap to focus on delivering tailored financing while expanding tech-driven support for SMEs.
The fund is co-led by Uncap’s investment principal, Esther Ndeti, and CEO, Franziska Reh. Ndeti said that the fund seeks to create an environment where more businesses can thrive in underserved markets.
SMEs account for 90% of African businesses, yet struggle to raise capital. Unconventional Capital aims to address this gap and contribute to sustainable economic growth in Africa.
By focusing on innovative financing models, Uncap hopes to support more businesses while setting new standards for inclusion and growth.