SA SME Fund, RMB Ventures, others back Secha Capital's second fund
Secha Capital today announced a first close of its second fund, with R300 million (c. $15.9 million) in investments from RMB Ventures, 27four Investment Managers, The SA SME Fund and Caleo Capital.
Secha Capital was founded by Nombuso Nkambule, Brendan Mullen and Rushil Vallabh in 2017. Its operator-investor model places highly skilled human capital resources into its portfolio companies.
”Secha’s first fund proved that the combination of equity investments and human capital for growth stage businesses is a replicable model for generating financial returns and social impact, particularly in women-founded businesses in South Africa,” the firm said in a statement.
Secha Capital Fund II will follow a similar mandate and has already made four investments – iG3N, Cultura Fresh, Herbivore and FarmTrace. The fund plans to make ten more investments within the next five years.
“We invest in companies at an inflection point in their growth trajectory. Most capital in Southern Africa is invested in either extremes – early-stage start-ups or mature companies. We’ve identified a gap in the market where we can find unique proprietary pipeline and bring in our team of operator-investors to achieve outsized returns,” explained Vallabh.
Added Mullen, “We are a young and diverse team. We bring operating expertise to ‘heartbeat-of-the-economy’ growth stage companies via our strategy consulting, finance and entrepreneurial backgrounds. We believe that our operator-investor model will re-imagine African investing and we are proud to have the support of some the greatest investors on the continent to do so.”
Brian Waweru of RMB Ventures said, “We are impressed with Secha’s thesis-driven, growth stage investment strategy. By investing in this gap in the market, it is a win for the entire Southern Africa PE and VC ecosystem. Our investment in Secha is consistent with our strategy to explore alternative models to stimulate economic growth in South Africa. We are proud to support Secha’s ongoing success.”
Ridwaan Kajee of 27four Investment Managers shared, “Secha’s operator-investor value-add model is the first of its kind. We believe that this is an inherent organisational strength that will deliver financial and impact returns. Secha has demonstrated that the model works and is replicable and we’re proud to therefore back this team to scale the model and showcase a new approach to investing in Africa.”
Claudia Manning of The SA SME Fund added, “We were impressed by Secha’s track record of job creation, transformation, growth and exits. We invested in them so that they can continue what they do with more companies, more people and at a greater scale.”
Secha expects Fund II’s final close in September 2024.
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