IFC launches $225M platform to back early-stage startups in Africa, Central Asia, Middle East • TechCrunch

Today, the International Finance Corporation (IFC), launched a $225 Million venture capital platform that will support early-stage companies in Africa, Middle East and Central Asia.

The IFC, a member of the World Bank, will make equity and “equity-like” investments in tech startups to “grow them into scalable ventures that can attract mainstream equity and debt financing.”

The World Bank stated in a statement that the institution will also use the sector-agnostic platform for close collaboration with other members to promote regulatory reforms, sector analysis and other changes that can help grow the regional venture capital ecosystems.

The IFC will also be seeking additional capital from private and development institutions. It has so far received an additional $50 million backing from the Blended Finance Facility of the International Development Association’s Private Sector Window, which de-risks investments in low-income countries.

“Support for entrepreneurship and digital transformation is essential to economic growth, job creation, and resilience,” said Makhtar Diop, IFC’s managing director, in a statement shared with TechCrunch.

“IFC’s Venture Capital Platform will help tech companies and entrepreneurs to expand during a time of capital shortage, creating scalable investment opportunities and backing countries’ efforts to build transformative tech ecosystems. We want to help develop homegrown innovative solutions that are not only relevant to emerging countries but can also be exported to the rest of the world,” he said.

The IFC’s regions of focus continue to receive a small percentage of the global capital funding, and the institution hopes to help bridge this gap made worse by the funding slowdown fueled by macroeconomic headwinds.

The new platform adds to IFC’s Startup Catalyst Program, which is also part of its investments and efforts to tap tech ecosystems in Africa, Middle East, Central Asia, and Pakistan.

So far, the institution has made direct investments in Twiga Foods in Kenya, TradeDepot in B2B ecommerce startups connecting brands with retailers, and Toters in Lebanon and Iraq. The platform will be used to invest in other regions than the major hubs of Egypt, Nigeria, Pakistan and Senegal.