Uncap Launches €30 Million Fund to Support Small Businesses in Africa

By Samuel Ouma

Uncap has launched a novel €30 million fund called Unconventional Capital to provide financial support to small and medium enterprises (SMEs) across Africa.

This fund is designed to aid businesses grow by offering non-dilutive, revenue-based financing, meaning companies won't have to give up ownership to receive funding.

The main objective of Unconventional Capital is to empower companies in sectors that are vital for Africa's economic growth, including agriculture, trade, logistics, climate resilience, and financial inclusion.

Uncap will join forces with partners such as SAIS, an agriculture technology initiative funded by the German Federal Ministry for Economic Cooperation and Development, and O-Farms, a circular agriculture program supported by the Ikea Foundation.

The Bill & Melinda Gates and Bayer Foundation will also support the fund, showing strong global confidence in Unconventional Capital's mission. Sustainable growth in underserved markets across Africa.

This new initiative is part of a broader move by Uncap to expand its financial activities while separating them from its technology platform, Level.

Level is a stand-alone SaaS platform that offers investment management tools for funders and accelerators across Africa, helping them streamline their operations.

Esther Ndeti, Uncap’s Investment Principal, and Franziska Reh, Uncap’s CEO, will lead Unconventional Capital as Managing Partners.

Speaking about the launch, Esther Ndeti said, “Launching Unconventional Capital is a pivotal moment for us, and I’m honored to step into the role of Managing Partner. This fund will address capital gaps for early-stage SMEs as they scale, deepening our impact. We’re not just aiming to support more businesses but to set new standards in the industry for innovation and inclusion.”