UK’s CDC Group commits $15m to TLcom’s Tide Africa Fund

UK development finance institution and impact investor CDC Group has committed $15-million to TLcom’s Tide Africa fund to support early-stage high-growth startups across sub-Saharan Africa.

The CDC Group said in a statement yesterday that the investment will support the UN’s Sustainable Development Goals 8, 9 and 10. These are decent work and economic growth, reduced inequalities and industry, innovation and infrastructure, respectively.

CDC Group chief executive Nick O’Donohoe (pictured above) said the investment in TLcom provides an “exciting” opportunity for the institution to support early-stage companies that are at a critical stage in their growth, as well as deepen the entrepreneurial ecosystem across Africa.

TLcom will invest between $500 000 and $10-million per venture

TLcom founder and managing partner Maurizio Caio, commenting in the same statement, said the venture capital (VC) firm is proud to be working with a strategic partner in CDC, which he said recognises the entrepreneurial potential of sub-Saharan Africa and is committed to leverage technology to achieve lasting impact.

TLcom’s TIDE Africa fund achieved a $50-million close last June and is the first Africa-focused fund raised by the London-based VC firm.

CDC Group said TLcom will invest between $500 000 and $10-million per venture.

These investments, it said, will enable high growth companies to achieve scale and attract later-stage funding from global VC investors, regional private equity firms and strategic partners.

TLcom has completed six investments in startups that include Kobo360, Andela and Twiga Foods.

Read more: TLcom Capital raises $40m for TIDE Africa Fund to support entrepreneurs

Featured image: CDC Group chief executive Nick O’Donohoe (CDC)