• About
  • Our Team
  • Contact Us
Tuesday, March 28, 2023
Falcons
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
No Result
View All Result

Home » Secha Capital announces R400m fund for SMEs as support gains pace

Secha Capital announces R400m fund for SMEs as support gains pace

by Sizwe Dlamini
May 14, 2021
in Uncategorized
Secha Capital announces R400m fund for SMEs as support gains pace

Secha Capital co-founder and managing director Rushil Vallabh says the organisation will find and fund small businesses that others do not. Photo: Simphiwe Mbokazi/African News Agency (ANA)

READ ALSO

Ramaphosa may have to consider the prospects of donning orange overalls

If it makes cash but you have no clout, Rupert and co will muscle you out


CAPE TOWN: Secha Capital, an early-stage operations-focused private equity fund, on Monday announced that the first close of its second fund (Secha Capital Fund II) would invest up to R12 million into established southern African small businesses for significant minority equity stakes.

Announcing a R400m fund, Secha Capital said it aimed to not only invest in small and medium enterprises (SMEs), but also offer on-the-ground operational support to accelerate growth. Complementing growth capital with human capital, the impact investment model aims to solve key pain points and accelerate growth in the small business sector.

Small businesses in the country face significant barriers to growth, such as limited access to funding and resources, ineffective supply chain procedures and unfamiliarity with new technology.

SMEs contribute 66 percent to economy-wide employment, according to a study by the Small Enterprise Development Agency (Seda). Despite this, many South African SMEs are unable to recruit young, top achieving talent, cannot afford management support and are excluded from key-value chain relationships.

Secha Capital co-founder and managing director Rushil Vallabh said the first fund was always proof of concept.

“Can we complement growth capital with human capital to solve SME pain points and accelerate growth? Our portfolio data is a resounding yes. It is now time to replicate and scale this investment model across Africa. We need to grow the Secha team to help more SMEs.”

Vallabh said the organisation would find and fund SMEs that others did not.

“We write smaller, but more impactful checks and then get Africa’s best and brightest to actually join the SME team.

“Our first fund invested in a range of African businesses, from plant-based haircare brand, native child, to networking marketing company, WUKINA, which empowers women to start their own businesses selling high-quality wigs,” said Secha Capital co-founder, Nombuso Nkambule. “These companies have grown over 10-fold and created over 100 jobs since we invested.”

By working alongside entrepreneurs, the Secha team supported SMEs as operators, not investors.

“Our operator-investors join the business to offer operational support and strategic guidance. They work closely with the team to help businesses scale efficiently, and as a result, employ more people,” said fellow Secha Capital co-founder and managing director Brendan Mullen.

He said the Secha model was unique as its funds were smaller.

“Our team is younger. We invest in a deeper pipeline of established SMEs in large, ‘boring’, fragmented sectors founded by previously ignored entrepreneurs. We then provide operational support for execution, channel access and tech-enabled capabilities.”

Secha Capital II expects a final close in October 2021.

President Cyril Ramaphosa, when presenting the Economic Recovery Plan to Parliament recently, said that there were between 2.4 million and 3.5 million SMMEs (small, medium and micro enterprises) in the country, with the largest number in the informal and micro sectors.

The Economic Recovery Plan has a strong focus on the development of small businesses and job creation as well as the acceleration of economic reforms and growth. Ramaphosa said small businesses offered the greatest untapped potential for growth, employment and fundamental economic transformation.

Western Cape Finance and Economic Opportunities MEC David Maynier also recently announced the launch of a R27m relief fund to help small businesses hard-hit by Covid-19.

The fund will provide financial assistance in the form of a grant to businesses that can apply to either the formal or informal business category. | 

BUSINESS REPORT


ShareTweet

Related Posts

Ramaphosa may have to consider the prospects of donning orange overalls
Uncategorized

Ramaphosa may have to consider the prospects of donning orange overalls

June 20, 2022
If it makes cash but you have no clout, Rupert and co will muscle you out
Uncategorized

If it makes cash but you have no clout, Rupert and co will muscle you out

October 13, 2021
AYO battles FNB in court over discrimination
Uncategorized

AYO battles FNB in court over discrimination

May 19, 2021
Does the DA hope to control Independent Media?
Uncategorized

Does the DA hope to control Independent Media?

May 18, 2021
Independent Media presents its case to SCoF, restates threat to media freedom
Uncategorized

Independent Media presents its case to SCoF, restates threat to media freedom

May 18, 2021
Oceana faces probe over BEE fraud claims
Uncategorized

Oceana faces probe over BEE fraud claims

May 18, 2021
Next Post
Mining, transport, construction sectors found to have most B-BBEE fronting cases

Mining, transport, construction sectors found to have most B-BBEE fronting cases

EDITOR'S PICK

Is KZN the factory of hitmen?

Is KZN the factory of hitmen?

March 8, 2023
ANC KwaZulu-Natal displays political intolerance

ANC KwaZulu-Natal displays political intolerance

February 15, 2023
Nepad concerned about South Africa’s energy crisis

Nepad concerned about South Africa’s energy crisis

February 9, 2023
ANC’s 30-year rule marked by empty promises and rhetoric

ANC’s 30-year rule marked by empty promises and rhetoric

January 23, 2023

POPULAR NEWS

Presidency reveals progress made to curb energy crisis engulfing SA

Presidency reveals progress made to curb energy crisis engulfing SA

January 23, 2023
Cyril Ramaphosa broke the law – Phala Phala Farmgate report

Cyril Ramaphosa broke the law – Phala Phala Farmgate report

December 1, 2022
Bawa accused of obstructing the course of justice

Bawa accused of obstructing the course of justice

October 27, 2022
Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

August 25, 2022
RIGHT OF REPLY: The IRR will not forsake its classical liberal values

RIGHT OF REPLY: The IRR will not forsake its classical liberal values

August 18, 2022

About

The Falcons mission is to provide quality in-depth reporting on matters that would otherwise not be covered by mainstream media, to equip the public with factual information that are hidden from the public eye so they can be able to demand accountability from the country’s leadership. – We speak truth to power.

Categories

  • banking
  • conflict, war and peace
  • corruption
  • crime, law and justice
  • economic sector
  • economy
  • economy, business and finance
  • financial and business service
  • government
  • In the Press
  • Insight
  • investments
  • law
  • macro economics
  • News
  • Opinion
  • Politics
  • The Cases
  • Uncategorized

Recent Posts

  • Is KZN the factory of hitmen?
  • ANC KwaZulu-Natal displays political intolerance
  • Nepad concerned about South Africa’s energy crisis
  • ANC’s 30-year rule marked by empty promises and rhetoric

Copyright © 2023 - All rights reserved

No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
  • About
  • Our Team
  • Contact Us

Copyright © 2023 - All rights reserved