Fundraising initiative by Alitheia IDF successfully secures $75 million for African businesses led by women, reaching a second closing milestone.
Alitheia IDF, a female-focused venture fund based in West Africa, has announced that it has reached its second close at $75 million. This joint venture fund was established in 2014 between Alitheia Capital, a partner of Goodwell Investments, and IDF Capital.
The Africa Development Bank (AfDB) seeded Alitheia IDF with an equity investment of $12.5 million in December 2015. Since then, the fund has grown, with FinDev Canada making a $7.5 million investment in November 2019.
Alitheia IDF invests in businesses that are majority-owned, majority-run, or mainly created to serve women. The fund's priority sectors are agriculture, agro-processing, and companies providing essential goods and services. Alitheia has invested in several businesses through Goodwell's funds, including Paga, MAX.ng, and Lidya.
Lidya, a digital lending platform, expanded its operations to Poland and Lithuania in October 2019. Closing the gender financing gap in Africa, as per AfDB, will lead to growth in GDP for African economies. The funding gap in the African women-led SMEs market is as much as $42 billion according to the AfDB.
Alitheia Capital, the partner in the Alitheia IDF Joint Venture Fund, was founded by Olajumoke Akinwunmi and Tokunboh Ishmael. IDF Capital, the other partner, was founded in 2008 by Polo Leteka.
There are other female-focused venture funds in Africa, such as Janngo Capital, founded by Fatoumata Ba, which has a EUR60 million target and is close to achieving it. Rising Tide Africa, a Lagos-based female angel investing and mentorship network, has invested in 7 companies, 60% of which are female-led.
The growth of funds like Alitheia IDF is a positive step towards addressing the funding gap and supporting women-led businesses in Africa. As these businesses grow and thrive, they will contribute to the economic development of the continent.
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