First Circle Capital, a venture capital firm based in Morocco and Uganda, has raised an additional $6 million from the International Finance Corporation (IFC), part of the World Bank Group, to invest in early-stage fintechs across Africa.
Why is this important? The firm is creating a $30 million fund to back pre-seed and seed companies working on payments, lending systems, credit infrastructure, and digital finance tools. First Circle Capital has also secured $2 million from the Women Entrepreneurs Finance Initiative (We-Fi) and $3 million from the Dutch Good Growth Fund, alongside support from regional development institutions and private tech operators, including FSD Africa, the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Axian Group.
Have there been other funds? The IFC has been steadily building a portfolio of Africa-focused venture and growth funds, backing managers that invest in technology, financial services, and small business enablement. Its commitments include early-stage vehicles like Ventures Platform’s Pan-African Fund II and P1 Ventures, both focusing on seed and pre-Series A companies across markets such as Nigeria, Kenya, Egypt, and francophone Africa.
In 2023, the IFC made a $75 million equity investment in Apis Growth Markets Fund III, a private equity firm, to focus on fast-growing companies using technological innovations to expand access to financial services across Africa, South Asia, and Southeast Asia.
Why this matters: Recent funding data shows a mixed but improving picture for African startups. Although the first half of 2025 recorded a 78% rebound in funding as compared to the previous year, the IFC notes that there was a sharp fall in VC funding post-2022, with Africa also impacted. The rebound in H1 2025 and IFC’s new investment suggest renewed investor interest in the ecosystem.
