Uncap has introduced Unconventional Capital, a €30m fund aimed at offering non-dilutive, revenue-based financing to early-stage small and medium-sized enterprises (SMEs) throughout Africa.
This new fund is a significant step forward in Uncap’s mission to support high-potential businesses driving economic growth in critical sectors such as agriculture, trade, logistics, climate resilience, and financial inclusion.
The fund, co-led by Esther Ndeti, Uncap’s current Investment Principal, and Franziska Reh, CEO of Uncap, will work with key partners such as O-Farms, a circular agriculture programme run by Bopinc and funded by the Ikea Foundation, and SAIS, an agritech initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH).
By working with its partners, the fund aims to unlock growth opportunities for businesses and harness its expertise and networks to better support SMEs in high-impact sectors.
The fund has attracted the backing of global institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation, underscoring its credibility and the growing confidence in Unconventional Capital’s innovative approach to alternative financing.
The financial model, focused on revenue-based financing rather than equity dilution, provides more flexible funding options for African businesses navigating early-stage challenges.
The fund will be co-led by Uncap’s current Investment Principal, Esther Ndeti, and the CEO Franziska Reh, both of whom will serve as Managing Partners.
Their combined experience and strategic vision will guide Unconventional Capital’s efforts in delivering impactful financing solutions to early-stage SMEs in Africa.
SMEs account for about 90% 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.
Uncap, established in 2019 but officially launched in 2021, plans to support each company with between $22,000 and $112,000 in funding.
Eligible SMEs must run a registered limited company in Kenya, Rwanda, Uganda, or Nigeria, with at least two years in operation and not less than $89,000 in revenue in the last 12 months.
In addition to launching the fund, Uncap announced the separation of its financial operations from Level, a stand-alone SaaS platform designed to simplify investment management for funders and accelerators in Africa.
