South Africa: Mineworkers Investment Company’s VC arm signs two deals
In July 2021, the Mineworkers Investment Company (MIC) launched MIC Khulisani Ventures, a R150 million (about $9.4 million) early-stage investment vehicle targeting black-owned innovative, high growth businesses in South Africa. This investment initiative targets high-growth-potential companies across all sectors barring primary agriculture and primary extractive industries.
Calls for applications closed on 15 August 2021 with MIC Khulisani Ventures having received 722 applications. “The pitch deck reviews and adjudication by the MIC Khulisani Ventures investment panel narrowed applications down to a list of top 10 finalists who were invited to pitch meetings. After several rounds of brisk Shark Tank-esque interviews, Kelo and Rentoza were the first to close with a combined investment of R43.5 million (about $2.7 million). The economic enablement associated with their respective business models served as an attraction and helped set them apart during the selection process. They are an example of the kinds of entities we continue to seek out mutually beneficial partnerships with,” says MIC chief investment officer, Nchaupe Khaole.
Edtech business Kelo received a capital allocation of up to R23.5 million (about $1.5 million) from Khulisani. The company secured contracts with key publishers that gave it licensing rights to educational content libraries with over fifty thousand titles.
MIC impact investment manager, Thato Ntseare, refers to Kelo as a disruptor of industry – changing the way people learn and access studying material using digital technology. “Their practical, book-rental model allows students to get the books they need for much cheaper, especially since they often need certain textbooks for a limited time only during the course of their studies. Their digital approach also contributes to saving paper as well as storage efficiency by avoiding the use of physical space for books. These are some of the things that caught our attention about them.”
Kelo CEO, Zakheni Ngubo says, “Through this investment and partnership, Kelo will be able to produce much greater results. We will be better positioned to demonstrate the true strength of our platform and contribute towards enhancing the education experience of many people by minimising the hassles that come with acquiring, circulating and even storing studying material. I am very pleased with the interest that MIC has shown in this innovative platform that is bringing an impactful solution to the market.”
Rentoza is an online electronics and appliances retailer operating on a subscription-based model. It makes access to essential technology easy and affordable to consumers, especially when traditional means of acquiring tech products are not an option.
“Rentoza’s focus on creating alternative means of accessing devices that play such a big role in our daily lives was the drawcard that attracted us to the business,” says Ntseare. “Their growth rate from the onset, showed that they are well-organised, extensively experienced, and a very capable enterprise. It is critical that we provide funding for businesses of this nature especially since they are developing solutions that speak to specific needs of consumers.”
Chief marketing officer at Rentoza, Mishaan Ratan believes the strategic partnership with MIC enables Rentoza to unlock and expedite its collective vision. “Throughout the interaction with MIC we have realised that this partnership is positioned in both our minds and hearts. This is going to deliver real impact to a country hungry for access and growth on both a personal and business level.”