RaliCap, a venture capital firm focused on fintech in emerging markets, has successfully launched a $30 million fund aimed at scaling B2B and API-first fintech startups in Africa, Latin America, and South Asia. The fund, which had an initial close of $20 million last month, has since expanded its target size due to strong demand from limited partners (LPs).Founded in 2020 by Hayden Simmons, RaliCap started as a collective of fintech experts collaborating on deal sourcing, due diligence, and founder support. The community-based approach, involving nearly 240 individual LPs from top fintech firms like Visa, Stripe, and MercadoPago, allowed RaliCap to source investment opportunities across these regions effectively. The collective evolved into a formal fund after recognizing the need to deploy its own capital to back promising startups.
With investments in over 30 startups across its target regions, RaliCap has focused on sectors like banking-as-a-service, open finance, and SME digitization. Some of the companies backed include Belvo, Mono, Minka, and Union54. The firm has also facilitated follow-on rounds for several of its portfolio companies, engaging both early and growth-stage investors.
RaliCap’s strategy revolves around supporting B2B fintech companies, as Simmons believes that the unit economics of B2C fintech in these fragmented markets are not yet viable. By focusing on API-driven solutions, RaliCap helps fintechs expand efficiently within markets, bridge the gaps in underserved areas, and scale regionally.
The firm invests between $200,000 and $500,000 at the pre-seed and seed stages, often leading rounds. Its key markets include Nigeria, Egypt, South Africa, Brazil, Mexico, Pakistan, and Bangladesh.
In addition to traditional VC support, RaliCap leverages its network of operators and domain experts to provide strategic guidance, focusing on helping startups grow rather than taking active board roles. This combination of capital and expertise is aimed at accelerating the growth of early-stage fintechs in emerging markets.
The launch of RaliCap’s $30 million fund aligns with the increasing interest in fintech investment across emerging markets, with the firm standing out for its pan-regional, fintech-specific focus. As the global VC landscape continues to evolve, RaliCap’s approach is tailored to meet the unique challenges and opportunities within these high-growth regions.
