Uganda-based VC Secures $6 Million for Fintech Financing in Africa

First Circle Capital, a specialist early-stage venture fund with offices in Casablanca and Kampala, has secured $6 million for fintech financing.

The funds were secured from World Bank’s International Finance Corporationtion (IFC), with the intention of focusing on startups.

First Circle Capital has offices in Uganda’s Capital, Kampala and Casablanca.

The investment is part of First Circle’s $30 million fund, dedicated to pre-seed and seed-stage companies that tackle financial exclusion, digital finance, and financial infrastructure challenges.

The $6 million capital will build a concentrated portfolio of 24 startups on the continent.

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It is looking to offer both capital and operational support to help founders scale and prepare for Series A rounds.

In 2024, African fintech experienced a drop in funding to $857 million, a 45% decrease from the previous year, though funding rebounded strongly in the second half of the year.

This even as financing has concentrated in the “Big Four” countries, among them Nigeria, South Africa, Egypt, and Kenya.

The aforementioned accounted for 76% of the total, with East and West Africa leading regional funding in 2024.

So far, First Circle has backed 15 startups across eight African markets, with 30% of portfolio companies led or co-founded by women and half operating in multiple countries.

Alongside IFC’s commitment, the fund has attracted $2 million from We-Fi (Women Entrepreneurs Finance Initiative), $3 million from the Dutch Good Growth Fund (DGGF), and support from FSD Africa, MSMEDA, Axian Group, and prominent tech entrepreneurs, including Jens Hilgers, Tim Schumacher, Peter Steinberger, and Steve Anavi.