Uncap proudly announces the establishment of Unconventional Capital, a €30 million fund aimed at providing non-dilutive, revenue-based financing to early-stage small and medium-sized enterprises (SMEs) across Africa.
This strategic initiative marks a significant expansion of Uncap’s mission to bolster economic development in key sectors including agriculture, trade and logistics, climate resilience, and financial inclusion.
Unconventional Capital will collaborate with esteemed partners, such as SAIS, an ag-tech initiative backed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and executed by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH), alongside O-Farms, a circular agriculture program funded by the Ikea Foundation and managed by Bopinc.
These collaborations will leverage extensive networks and expertise to enhance support for SMEs operating in high-impact sectors.
The fund has garnered initial backing from renowned global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation. Their support highlights confidence in Unconventional Capital’s innovative funding strategies and its commitment to fostering sustainable growth in Africa’s underserved markets.
“With the launch of Unconventional Capital, we reaffirm our dedication to advancing economic empowerment in Africa,”
stated Franziska Reh, CEO of Uncap, who, along with current Investment Principal Esther Ndeti, will serve as Managing Partners of the fund. Their combined expertise and strategic vision are set to guide the fund’s mission of delivering impactful financing solutions to SMEs.
In her remarks, Ndeti expressed her enthusiasm for the new initiative:
“Launching Unconventional Capital is a pivotal moment for us. Over the past three years, we’ve championed innovative, alternative financing for businesses across Africa. This fund will fill capital gaps for early-stage SMEs as they scale, deepening our impact. We aim to not just support more businesses but to establish new industry standards for innovation and inclusion.”
Uncap, founded in 2019 and officially launched in 2021, has been a pioneer in alternative financing for businesses in sub-Saharan Africa, utilizing a revenue-based financing model that empowers entrepreneurs while preserving ownership.
In conjunction with this new fund, Uncap is also separating its financial activities from its proprietary technology platform.
The recently launched stand-alone SaaS platform, Level, will continue to offer streamlined investment management tools for funders and accelerators throughout the continent.
As Unconventional Capital embarks on its journey, it signals a hopeful and transformative future for SMEs in Africa, with the potential to redefine the landscape of business funding on the continent.
