Uncap has launched Unconventional Capital, a €30 million fund aimed at providing revenue-based financing to early-stage small and medium-sized enterprises (SMEs) across Africa without.
The financing will come inform of non-dilutive fund-a capital that a business owner receives that doesn't require them to give up equity or ownership.
The fund is designed to support businesses in sectors crucial to economic growth, such as agriculture, trade, logistics, climate resilience, and financial inclusion.
Unconventional Capital Managing Partner Esther Ndeti said that Unconventional Capital seeks to redefine SME financing by creating an environment where more businesses can thrive in underserved markets and contribute to sustainable economic growth across the continent.
SMEs account for about 90 percent of African businesses, yet they face many challenges in raising capital.
"The inefficiency of African capital markets in effectively supporting SMEs, coupled with limited visibility to a broad investor base, continues to hinder access to essential funding for small and medium-sized enterprises across the continent.” said Ndeti.
The fund will collaborate with partners including SAIS, an ag-tech initiative backed by Germany’s Federal Ministry for Economic Cooperation & Development (BMZ), and O-Farms, a circular agriculture program funded by the Ikea Foundation.
“We hope this Fund will address capital gaps for early-stage SMEs as they scale, deepening our impact. In the end, we want to not only support more businesses but also set new standards in the industry for innovation and inclusion," said added Ndeti.
These partnerships aim to create growth opportunities for African SMEs by leveraging expertise and networks in high-impact sectors.
The fund has attracted support from global institutions like the Bill & Melinda Gates Foundation and the Bayer Foundation, highlighting confidence in Unconventional Capital's approach to alternative financing.
Unlike traditional equity-based models, the fund focuses on revenue-based financing, offering flexible funding options for early-stage businesses.
Uncap has also separated its financial operations from its technology platform, Level, a SaaS tool that streamlines investment management for funders and accelerators.
This move allows Uncap to focus on delivering tailored financing solutions while expanding its tech-driven investment services.
The fund will be co-led by Investment Principal Esther Ndeti and CEO Franziska Reh, who will serve as Managing Partners.
She highlighted the fund's mission to close financing gaps and promote sustainable economic growth in underserved markets.
