10 Investors Investing in African E-Commerce

Africa’s e-commerce market is booming, with projections to grow from $317 billion in 2024 to $1,017 billion by 2033, driven by increasing internet users, mobile adoption, and better infrastructure. Investors are seizing this opportunity to fund startups addressing challenges like logistics and payment systems. Here’s a quick look at the top 10 investors shaping Africa’s e-commerce landscape:

TLcom Capital: Focuses on early-stage startups with $350M under management and a strong presence in Sub-Saharan and North Africa.
Partech Africa: Invests $1M–$15M in Series A/B rounds, with a €280M fund supporting tech-driven businesses.
Naspers Ventures: Backed South Africa’s Takealot.com, contributing to $705M in economic value in 2024.
Knife Capital: Invests in growth-stage ventures, supporting female-led startups like Kasha.
Future Africa: Targets early-stage startups with $10M invested in 106 companies, including Flutterwave.
4DX Ventures: Focused on scalable tech ventures, notable for backing MaxAB and Wasoko.
Alitheia Capital: Africa’s first women-led private equity fund, managing $250M with a gender-lens approach.
Helios Investment Partners: Africa’s largest dedicated fund ($3.6B), supporting platforms like Mall for Africa.
Launch Africa Ventures: Invests $250K–$300K in seed-stage startups, with 16% of its portfolio in e-commerce.
Endeavor Catalyst: Co-investment fund managing $500M, backing companies like Chari in Morocco.

Quick Comparison

Investor	Focus Area	Investment Range	Notable Investments	Unique Approach
TLcom Capital	Early-stage startups	$1M–$3M	LittleFish	Seed and Series A focus
Partech Africa	Series A/B funding	$1M–$15M	TradeDepot	Pan-African tech focus
Naspers Ventures	Digital platforms	Undisclosed	Takealot.com	Boosting South Africa’s economy
Knife Capital	Growth-stage ventures	$21M (e.g., Kasha)	Kasha	Female-led business support
Future Africa	Early-stage startups	$100K–$500K	Flutterwave, Jumba	Community-driven investments
4DX Ventures	Scalable tech ventures	Undisclosed	MaxAB, Wasoko	Pan-African B2B focus
Alitheia Capital	Gender-focused investing	Undisclosed	Omnibiz	Women-led private equity fund
Helios Investment	Digital infrastructure	Undisclosed	Mall for Africa	Largest Africa-dedicated fund
Launch Africa Ventures	Seed-stage startups	$250K–$300K	MarketForce	Pre-Series A investments
Endeavor Catalyst	Consumer tech startups	Up to $2M	Chari	Co-investment with Endeavor network

Africa’s e-commerce sector offers immense potential, but success requires addressing infrastructure challenges and committing to long-term strategies. These investors are leading the charge in transforming the digital economy.

Africa is the ultimate destination for unlimited business ideas and opportunities

1. TLcom Capital

TLcom Capital, a major player in African tech investment, manages over $350 million, with a strong focus on early-stage e-commerce startups. Their TIDE Africa Fund II, which closed at $154 million, highlights their dedication to driving digital growth across the continent.

The firm typically invests between $1 and $3 million in seed rounds, with the option for additional support in later stages. This approach has been particularly effective in e-commerce, where TLcom has backed ventures like LittleFish, a South African platform.

“Our investment strategy remains consistent. Similar to our first fund, over 80% of TIDE Africa Fund II’s investments will be at the seed or Series A stage. This allows us to partner with Africa’s most talented entrepreneurs early on in their journeys.”
– Maurizio Caio, Founder and Managing Partner at TLcom Capital

Their portfolio performance speaks volumes about the results of their investments:

Metric	Outcome
Revenue Growth	3x increase since investment
Job Creation	Over 2,300 new positions
Valuation Growth	5x increase
Additional Capital Raised	Over $500 million

TLcom’s reach is also expanding geographically. While their efforts have traditionally centered on Sub-Saharan Africa, they’ve recently entered North Africa, starting with Egypt.

“Since the closing of our previous fund, African tech has secured more high-value financing rounds, exits and M&As than ever before and this is only just the beginning. It is becoming increasingly evident that our sector has broken into a new era of maturity driven by very strong business fundamentals that African founders are demonstrating not only in the fintech space, but across a huge number of the continent’s largely underserved markets.”
– Maurizio Caio, Nairobi-based Founder and Managing Partner at TLcom

TLcom Capital’s focused and deliberate approach is paving the way for more growth and success in African e-commerce.

2. Partech Africa

Partech Africa raised €280 million (around $304.5 million) for its second fund, aiming to support technology-driven businesses across Africa. The firm invests between $1 million and $15 million per startup, primarily during Series A and B funding rounds. This approach has backed companies like TradeDepot, a Nigerian platform addressing inefficiencies in the FMCG sector.

Here’s an overview of their investment focus:

Investment Area	Details
Investment Range	$1M – $15M
Target Stages	Seed to Series C
Geographic Focus	Pan-African
Portfolio Size	20+ companies
Key Sectors	E-commerce, Fintech, Healthcare

Even though African tech funding fell by 46% to $3.5 billion in 2023, e-commerce held steady, accounting for 13% of the total funding. This highlights the sector’s resilience despite broader market challenges.

“Africa needed local investment; that is what we wanted the fund to be”,

Tidjane Dème, General Partner at Partech.

This vision drove Partech Africa to expand regionally, including opening an office in Lagos, which hosts nearly a third of their portfolio companies. Recently, they invested in an undisclosed e-commerce platform in Senegal. Their strategy combines cutting-edge technology with strong operations to equip entrepreneurs tackling large-scale market opportunities.

“We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested, with some more than doubling their commitment”,

Cyril Collon, General Partner at Partech.

Headquartered in Dakar, Senegal, Partech Africa plays a key role in developing the continent’s tech ecosystem, which boasts a 45% compound annual growth rate (CAGR). The firm’s impact is also reflected in the growing number of active investors in the region, with 268 participating in deals in 2021 – a 144% year-over-year increase.

3. Naspers Ventures

Naspers Ventures, a South African multinational investor, reported its first full-year trading profit of $38 million for the year ending March 31, 2024. This milestone reflects the growing influence of its subsidiary, Takealot.com, South Africa’s largest online retailer. Like other major investors in the region, Naspers uses its platform to boost digital commerce and support local economic growth.

Its portfolio includes well-known digital platforms such as Mr D, Superbalist, AutoTrader, and Property24. Together, these platforms generated over $705 million (R13 billion) in economic value and contributed approximately $81 million (R1.5 billion) to household income. Naspers also works with the South African government to strengthen township economies through digital initiatives. Additionally, its social program, Naspers Labs, in collaboration with RLabs, focuses on creating opportunities for unemployed youth.

A statement from industry leaders highlights the broader vision behind these efforts:

“There is a renewed sense of energy and commitment across various players in South Africa to get our country on the path of inclusive economic growth and shared prosperity. Though still in its early stages, the shift to digital in South Africa mirrors global trends and offers a rare chance to unlock significant economic potential for our nation”.

In 2024, the company’s shares climbed by over 16%, reaching a valuation of $35.8 billion (R662 billion). Naspers Foundry, its early-stage venture fund focused on South Africa, continues to support promising e-commerce startups. The company’s digital platforms have also contributed to reducing wholesale and retail trade costs by 0.5% and living expenses by 0.6% through better convenience and lower prices.

Naspers Ventures continues to demonstrate its dedication to reshaping South Africa’s digital economy through its ongoing growth and investments.

4. Knife Capital

Knife Capital, a South African growth-stage investor, focuses on tech-driven ventures with strong growth potential, aiming to drive Africa’s digital commerce forward. The firm operates on its ‘FIND MAKE GROW REALISE’ philosophy and closed a $50 million Series B fund in September 2023 to further its mission. Knife Capital prioritizes companies with international expansion potential and solid technological foundations.

In July 2023, Knife Capital invested $21 million in Kasha, a Rwandan e-commerce platform dedicated to improving women’s health access. This partnership has already led to a 50x increase in Kasha’s annual recurring revenue.

Keet van Zyl, co-founder and partner at Knife Capital, shared his thoughts on the investment:

“In the current economic climate, it is refreshing to come across such a high-growth capital-efficient business that is female-led and optimized to serve the large mass market segment in Africa, being especially strong at serving women customers. We look forward to being a partner in the Pan-African expansion journey with this purpose-driven dedicated team.”

Investment Criteria

Knife Capital evaluates potential investments based on the following:

Investment Criteria	Requirements
Product Status	Clearly defined with recurring revenues
Market Potential	Large market opportunity
Team Quality	Strong management capabilities
Financial Health	High gross margins
Operations	Transparent governance processes
Technology	Advanced technological expertise

Recent Developments

Knife Capital continues to make strides in Africa’s tech ecosystem. In August 2024, its portfolio company Quicket was acquired by Ticketmaster, marking the global ticketing giant’s entry into the African market. With Fund III, Knife Capital plans to invest in 10–12 startups, focusing on high-growth sectors like AI and fintech, primarily in South Africa.

A key priority for Knife Capital is supporting female-led ventures, addressing the fact that less than 3% of Africa’s $6 billion venture capital market went to such teams last year. Through initiatives like the Grindstone Accelerator program, Knife Capital nurtures technology-enabled SMEs, providing mentorship and strategic guidance to help them thrive.

5. Future Africa

Future Africa is a key player in African tech investment, focusing on e-commerce and digital infrastructure. The firm has invested over $10 million in 106 companies, which have collectively raised more than $1 billion. Their strategy is centered on supporting early-stage startups with high growth potential.

Investment Strategy

Future Africa uses its TD3 framework to assess investment opportunities:

Criteria	Focus Areas
Talent	Team expertise and experience
Design	Product and user experience
Data	Metrics and analytics
Distribution	Market reach and scalability

They typically invest between $100,000 and $500,000 in pre-seed and seed-stage companies.

Portfolio Success Stories

This approach has fueled the growth of several standout companies:

Flutterwave: A fintech giant that scaled rapidly before its 2021 exit. Today, it handles over 20 million API calls and processes more than 500,000 payments daily, supporting over 1 million businesses in 33 African countries.
Jumba: A construction tech marketplace that achieved $10 million in annualized GMV and reached 60% of Kenya’s counties. The company raised $5.5 million within just seven months.

More Than Just Funding

Future Africa offers more than capital. Its community includes over 300 members, ranging from local entrepreneurs to global business leaders, policymakers, and angel investors.

“Our investment philosophy is inspired by the principles of African prosperity built on lessons from a decade of building and investing on the continent. Indeed, what makes investing in Africa different is that a trusted community, comprised of longstanding relationships built over time and nurtured through trust, drives action and leads to success.”

Their portfolio companies have created over 5,000 jobs and now hold a combined valuation of more than $1.5 billion. This network-driven model highlights a shift in African tech investment, emphasizing relationships and community as key drivers of success in the evolving e-commerce sector.

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6. 4DX Ventures

4DX Ventures is a major player in African e-commerce, with offices in New York City, Accra, Cairo, and Nairobi. The firm has invested in over 50 companies across more than 20 countries, with around 30% of its investments focused in Egypt.

Investment Philosophy

4DX Ventures follows a detailed framework to identify and evaluate promising tech ventures. Their approach focuses on:

Investment Criteria	Key Focus Areas
Market Opportunity	Large addressable markets capable of reaching $100M in revenue within 5–7 years
Team Quality	Exceptional entrepreneurs with deep expertise in their fields
Business Model	Strong unit economics and sustainable competitive advantages
Growth Potential	Demonstrated demand and clear plans for scalability
Technology Impact	Solutions designed to improve efficiency and productivity in Africa

These principles guide the firm’s e-commerce investment decisions.

Notable E-commerce Investments

This structured approach has led to several impactful e-commerce investments:

MaxAB and Wasoko Merger: 4DX Ventures backed MaxAB, a platform connecting FMCG suppliers with informal retailers in Egypt and the MENA region. MaxAB later merged with Wasoko, creating the largest pan-African B2B e-commerce company, linking suppliers and retailers across MENA and East Africa.
Breadfast: A grocery delivery platform offering fast and reliable service across the MENA region.
Taager: A social commerce platform that helps online merchants streamline operations and expand their reach.

Strategic Impact

4DX Ventures doesn’t just provide funding – it plays a key role in shaping Africa’s tech landscape. As Walter Baddoo, Co-Founder and General Partner, puts it:

“IFC and 4DX Ventures share the commitment to supporting tech entrepreneurs with innovations that will help Africa leapfrog in critical areas such as climate, health care, fintech, e-commerce, and education.”

This mission is especially important given Africa’s share of global venture deal volume was just 2% in Q3 2023. By focusing on early-stage tech ventures, 4DX Ventures is helping to create strong e-commerce ecosystems across the continent.

Value Addition

What sets 4DX Ventures apart is its geographic reach, deep industry knowledge, and hands-on support for its portfolio companies.

“4DX is a persistent search for truth and a commitment to constant learning”.

7. Alitheia Capital

Alitheia Capital plays a key role in Africa’s digital commerce growth by using gender-focused investment strategies to tap into overlooked opportunities. Through its flagship fund, Alitheia IDF, the firm stands out as Africa’s first women-led private equity fund, managing over $250 million, with $100 million dedicated to gender-lens investing.

Investment Strategy and Impact

Alitheia Capital blends financial returns with social impact through its gender-focused investment approach. Their framework prioritizes:

Investment Focus	Impact Metrics
Gender Diversity	78% of portfolio companies are women-owned
Geographic Reach	Operating in Nigeria, South Africa, Ghana, Zambia, Zimbabwe, and Lesotho
Growth Stage	Focus on companies with potential for regional expansion
Social Impact	60% of portfolio companies implement gender strategies
Financial Returns	Focus on sustainable business models

This approach is evident in the success of their key investments.

Notable E-commerce Investments

Omniretail (Omnibiz) is a standout example. Between 2019 and 2022, the company grew its revenue from $0.25 million to $139.88 million, increased its workforce from 11 to 896 employees, and achieved a 772.39% compound annual growth rate (CAGR). In 2024, Financial Times named it Africa’s fastest-growing company. Women entrepreneurs make up a significant portion of Omnibiz’s customer base, highlighting its inclusive impact.

Strategic Value Addition

Alitheia Capital’s investments go beyond financial returns. Oti Ilentamhen, Investment Principal at Alitheia, explains:

“With a strong focus on empowering underrepresented entrepreneurs, OmniRetail exemplifies the potential for technology-driven solutions to drive positive change in underserved communities”.

This focus is critical in a landscape where women receive less than 5% of all investment on the continent, even though they lead over 40% of small and medium-sized enterprises (SMEs).

Future Vision

Principal Partner Tokunboh Ishmael underscores the firm’s mission:

“By aligning capital with purpose, we are driving transformative change for communities and the planet, ensuring everyday Africans can thrive. Alitheia IDF’s investments demonstrate that empowering women transforms communities and creates long-lasting impact for the continent and the planet”.

Studies suggest that closing the gender investment gap could boost GDP by 26%, adding $28 trillion to the global economy by 2025.

8. Helios Investment Partners

Helios Investment Partners stands out as a key player in African e-commerce, combining financial expertise with a focus on driving progress across the continent. As Africa’s largest investment firm dedicated to the region, Helios manages $3.6 billion in funds, playing a pivotal role in advancing digital commerce and other sectors.

Investment Portfolio and Strategy

Helios follows a balanced approach, aiming for both financial returns and meaningful progress. Here’s a look at its portfolio:

Focus Area	Strategic Approach	Achievements
Digital Infrastructure	Tech-driven services	Active in over 30 African countries
Financial Technology	Growth-stage investments	$9 billion in portfolio revenue
E-commerce Solutions	Platform innovation	Over 9,000 jobs created since 2008
Consumer Services	Regional expansion	B Impact score of 100.0

Notable E-commerce Investments

One standout example of Helios’ influence is its investment in Mall for Africa (MFA) in 2013. This Nigerian platform later became Link Commerce, extending its reach to more than 30 countries across Africa and Latin America. By adopting a SaaS model, Link Commerce now supports industries like financial services, logistics, and e-commerce. These efforts have laid the groundwork for future investments in digital commerce.

Strategic Moves

Helios has been instrumental in several high-profile deals. It led a $100 million Series D round for M2P Fintech, secured $75 million from EIB Global for its Helios Fund V, and bolstered its digital infrastructure through strategic collaborations.

Expert Opinions

David Masondo, South Africa’s Deputy Minister of Finance and Chair of the Public Investment Commission, highlights Helios’ role:

“Private capital fuels growth, and EIB Global’s investment in Helios V showcases innovative financing to unlock Africa’s potential”.

EIB Vice-President Ambroise Fayolle also praises the firm:

“We are happy to be partnering with Helios – an important pan-African equity firm that has been operating in Africa for over two decades, with good access to investment opportunities, and a strong network and local footprint”.

Investment Approach

Helios focuses on early-growth investments to scale e-commerce platforms. Its strategy includes:

Building high-growth platform companies
Using proven investment techniques
Actively managing its portfolio to drive results
Supporting cross-border growth

With offices in London, Paris, Lagos, and Nairobi, Helios relies on its African-centric team to identify and develop promising ventures. Its investments continue to fuel the growth of digital commerce across Africa, delivering both financial success and transformative impact.

9. Launch Africa Ventures

Launch Africa Ventures is one of the busiest venture capital firms backing seed and pre-Series A e-commerce startups in Africa. Its first fund raised an impressive $36.3 million, showing a strong commitment to boosting digital commerce in the region.

Investment Portfolio Overview

Category	Details	Highlights
Portfolio Reach	133 startups across 22 countries	$31 million invested
E-commerce Focus	16% of portfolio companies	Focus on B2B and B2B2C models
Investment Range	$250,000–$300,000 per deal	Targets over 10% monthly growth
Founder Demographics	91% African founders	20% women founders

Strategic Investment Criteria

Launch Africa applies specific benchmarks to identify startups with high potential:

Minimum $25,000 in monthly recurring revenue
Ability to secure a $3–5 million Series A round within 24 months
Plans to expand beyond their home market within 12 months
Proven success in commercial pilots or corporate partnerships

This structured approach helps pinpoint ventures ready for growth and scalability.

Notable E-commerce Investment

One standout investment is MarketForce, a Kenyan B2B retail platform that embodies Launch Africa’s focus on scalable, impactful businesses.

Insights from Leadership

Managing Partner Zachariah George emphasizes the importance of scaling strategically:

“There’s very little strategic non-financial value among pre-Series A investment on the continent… But it’s very important to have a plan to scale into multiple geographies and product verticals, and you can’t do that by playing low.”

Investment Process and Timeline

The firm evaluates between 200 and 400 deals every month, with a swift investment process that typically takes 6–8 weeks to finalize.

Future Plans

Launch Africa is already looking ahead with Seed Fund 2, aiming to raise $75 million. This move signals continued growth and a deeper focus on transforming the African e-commerce landscape.

10. Endeavor Catalyst

Endeavor Catalyst is a co-investment fund managing over $500 million in assets, with a strong focus on African e-commerce and consumer technology ventures. The fund pairs financial investments with support from the Endeavor network, aiming to drive growth in these sectors.

Investment Strategy Overview

Investment Range: Up to $2 million per company
Geographic Focus: 40 African startups since 2017
Portfolio Distribution: 8% of global investments in Africa, with about 25% allocated to consumer tech and fintech
Investment Criteria: Companies led by Endeavor Entrepreneurs with solid fundamentals and a clear path to profitability

Strategic Market Position

Endeavor Catalyst prioritizes investing in businesses with strong fundamentals and a clear trajectory toward profitability, often writing checks in the million-dollar range.

Notable E-commerce Investment

One standout investment is Chari, a Moroccan e-commerce platform. In 2022, Endeavor Catalyst invested $1 million to support Chari’s expansion across Africa and its strategic move into fintech through the acquisition of Axa Credit.

Leadership Perspective

Allen Taylor, a founding partner of Endeavor Catalyst, highlights their confidence in the African market:

“We are going to be doing a lot more investing here because this is where growth is coming from.”

Future Growth Plans

Endeavor Catalyst is ramping up its presence in Africa. It plans to raise a new fund of up to $350 million, aiming to double its African portfolio within 5-7 years. The fund will also focus more heavily on SaaS and consumer tech investments.

“We have been reminded of the importance of cultivating investors who understand Africa’s structural issues and that building a sustainable business is a long-term commitment.”

Conclusion

Africa’s e-commerce market is on a strong growth trajectory, expected to hit $40.49 billion by 2025 and $56.03 billion by 2029. This surge is largely fueled by increasing mobile adoption and better infrastructure, making the region a compelling prospect for investors. Mobile transactions dominate the landscape, accounting for over 60% of all e-commerce activity. These factors are paving the way for the investments outlined earlier.

Even with this progress, there’s still plenty of room for growth. African startups currently attract less than 1% of global venture capital. However, the first half of 2024 alone brought in $1.1 billion in funding, signaling rising confidence among investors. As Sam Chappatte, Founder & CEO of Kapu, puts it:

“E-commerce in Africa isn’t plug-and-play. There are infrastructure challenges that are regularly discussed. But we are also in the early days of widespread digital adoption. This has been the stumbling block of many to date.”

Initiatives like the African Continental Free Trade Area (AfCFTA) are boosting cross-border trade, while advancements in logistics and payment systems are addressing long-standing obstacles. With electronic payments projected to grow by 152% by 2025, and fashion and electronics sales forecasted to reach $13.4 billion and $11.2 billion respectively, Africa’s e-commerce sector offers promising opportunities for investors ready to commit to long-term strategies.

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