Egypt-based venture capital firm, Sawari Ventures, has announced plans to launch its second fund, valued at USD 200 million, by early 2025.
This initiative aims to support startups across Africa, particularly in Egypt, Morocco, Tunisia, Kenya, and West Africa.
The initiative will focus on high-growth sectors such as fintech, digital education, health tech, and agritech.
A representative from Sawari noted that the new fund will target Series A and Series B startups, following the success of the firm’s first fund, which invested in 30 Egyptian startups and saw remarkable returns.
“The African startup ecosystem is expanding rapidly, and there’s a pressing need for substantial funding to help companies scale,”
“This success has driven Sawari’s decision to broaden its geographical scope and increase financial backing.”
Sawari Ventures also aims to foster cross-border collaborations, strengthening ties between Africa, the Middle East, and Europe.
It was also disclosed that Sawari has partnered with a French public investment bank, Bpifrance, to provide African startups with enhanced access to international networks and markets.
“Our partnership with Bpifrance will open doors for African startups to European investors and resources, which are crucial for business growth,” the firm added.
Bpifrance’s involvement in the fund not only bolsters Sawari’s capital reserves but also aligns with its broader vision of transforming Africa into a global technology hub.
Through this initiative, Sawari Ventures hopes to bridge the gap between African and European markets, facilitating the exchange of capital, talent, and innovation.
The fund donation begins at a time when African startups are gaining prominence in the global venture capital landscape.
Recall that in 2023, African startups raised over USD 5 billion, marking a 50% growth despite global VC declines.
Sawari’s new USD 200M fund seeks to strengthen this momentum.
What to know about Sawari Ventures
This firm was founded in 2010 by an investor Ahmed El Alfi.
The company is one of the most influential venture capital firms in Africa and the Middle East as it has built a strong reputation for identifying and supporting transformative startups with the potential to scale across borders.
Sawari’s first fund, launched in 2018, was valued at USD 70 million and focused primarily on startups in Egypt.
It invested in 30 Egyptian startups across diverse sectors, including fintech, e-commerce, health tech, and logistics.
The fund saw impressive returns, setting the stage for the firm’s decision to launch the larger USD 200 million second fund.
This success positioned Sawari as one of the leading venture capital firms in the region.
The company has also invested in several successful startups that have grown significantly.
The likes of Si-Ware Systems, an Egyptian company specializing in semiconductor technology, which has become a global leader in micro-electro-mechanical systems (MEMS) technology is part of their success story.
A Cairo-based software company, Instabug, that provides in-app feedback and bug reporting tools for mobile developers, now used by top tech companies worldwide also had a history with them.
A mass transit startup, SWVL, offering bus-sharing services across cities, which became one of Egypt’s most well-known tech success stories is also inclusive.
Meanwhile, Sawari Ventures has also been strategically focused on cross-border investments, facilitating the entry of African startups into European and Middle Eastern markets.
Through its investment efforts, Sawari has played a critical role in fostering a culture of entrepreneurship in North Africa, especially in Egypt.
Its accelerator program, Flat6Labs Cairo, has helped over 100 startups gain the mentorship, funding, and exposure needed to thrive in competitive markets. Many of these startups have gone on to scale their businesses regionally and internationally.
The company has also been instrumental in positioning Africa as a growing tech hub.
The firm’s role in supporting the fintech boom and nurturing scalable tech solutions has contributed to Africa raising over USD 5 billion in venture capital in 2023, despite global venture capital slowdowns.