In a strategic move reflecting Japan’s growing interest in Africa’s tech landscape, venture capital firm Uncovered Fund has teamed up with corporate investor Monex Ventures to launch a new ¥3 billion (approximately $20 million) fund. The fund, titled the Uncovered Monex Africa Investment Partnership, will target early-stage startups across Africa and the Middle East and North Africa (MENA) region.
The fund’s mission is to support startups building the foundational digital and physical infrastructure of the continent’s future. It will focus on four high-impact sectors: finance, distribution, mobility, and sustainability.
Despite a global slowdown in venture capital activity reflected in Africa’s own funding dip over the past 18 months, the fund is betting on long-term growth drivers. Africa’s population is expected to reach 2.5 billion by 2050, and its mobile internet user base is projected to more than double from 500 million to 1.1 billion by 2030.
Beyond financial investment, the fund aims to serve as a strategic bridge between African startups and Japanese corporations seeking new growth avenues outside their saturated domestic market. “This is about more than capital deployment; it’s about strategic matchmaking,” a source close to the fund told Sifted. “We’re offering investors both strong returns and direct access to innovation and market entry in Africa.”
The fund’s investment thesis centers on four key sectors where technology can address critical infrastructure gaps and where Japanese expertise can add value:
- Finance: With a large unbanked population, fintech remains a major opportunity. The fund will back consumer-facing solutions like mobile payments and micro-lending, as well as B2B platforms offering payment, credit, and accounting services to SMEs. These platforms could eventually integrate with Japanese financial institutions seeking new markets.
- Distribution & Logistics: As African cities expand, efficient delivery and supply chain solutions are in high demand. The fund will invest in retail tech, e-commerce platforms, and logistics innovations—from last-mile delivery to warehouse optimization. These startups could serve as future distribution channels for Japanese goods.
- Mobility: Rising middle-class demand for vehicles presents opportunities in used car marketplaces and electric vehicle (EV) platforms. With governments across Africa promoting EV adoption, Japanese firms specializing in automotive parts, battery tech, and data systems could find strategic partners among the fund’s portfolio.
- Sustainability: The fund will explore AgriTech and carbon economy solutions. Africa holds 60% of the world’s uncultivated arable land, making agricultural innovation a global priority. Investments will focus on smart irrigation, crop optimization, and data-driven farming—potentially creating demand for Japanese agricultural machinery and IoT solutions. Carbon credit projects, especially in renewable energy-rich markets like Kenya, are also on the radar.
The partnership combines Uncovered Fund’s local expertise and deal-sourcing experience with Monex Ventures’ strong ties to corporate Japan. Uncovered Fund has already been active in Africa through its first fund, giving it a solid foundation for identifying promising startups and supporting founders. With a relatively modest size of $20 million, the fund is expected to take a focused, hands-on approach, primarily targeting seed and pre-Series A rounds.
Ultimately, the fund’s success will hinge on its ability to deliver on a dual mandate: generating top-tier venture returns while creating tangible business opportunities for Japanese corporations in one of the world’s most dynamic and complex markets. The Uncovered Monex Africa Investment Partnership is not just betting on Africa’s growth—it’s positioning itself as a gateway for Japanese innovation to meet African ingenuity.
