For a breakdown of African private credit transactions, visit our Dealmaker’s Log.
TLG Capital, an investment firm operating across sub-Saharan Africa, has signed a $3 million scaling debt facility with Down to Earth Technologies (DTE), a Nairobi-based ICT systems integrator. The facility will provide the working capital DTE needs to fulfil its growing pipeline of client projects, allowing it to take on larger infrastructure contracts, deepen its vendor partnerships and expand its footprint across East Africa.
DTE designs, deploys and supports networking, digital infrastructure and cybersecurity systems for more than 100 enterprise clients in banking, telecommunications, government, healthcare and education. Active in Kenya, Uganda, Rwanda, Tanzania, Ethiopia and Djibouti, the company works with global technology providers such as Cisco, Palo Alto Networks, IBM, Infoblox, Dell, HPE and Red Hat.
TLG said the transaction reflects its tailored approach to private credit, which gives high-growth African businesses such as DTE access to institutional capital on terms suited to their needs.
“When DTE approached us for funding, we could immediately tell that this was a high-performing business,” said Isha Doshi, co-founder and partner at TLG Capital. “DTE is a trusted partner to critical institutions in East Africa and beyond, and with 15 years of operation under its belt, we understand that it needs capital that matches its scale of ambition. As Kenya is positioned for major data centre investments, TLG is proud to be supporting the high-quality companies building Africa’s digital infrastructure.”
“DTE is on a constant search for capital that matches our cycles,” said Vincent Milewa, managing director of DTE. “In Kenya, we often say that many capital providers give you an umbrella when the sun is shining and take it away when it starts to rain. TLG is breaking that norm: their flexibility allows us to plan two or three years ahead instead of 90 days at a time. Unlike many investors, TLG took the time to understand the infrastructure behind our business and came in to solve the real issue: tailored capital. We have grown from eight employees in 2019 to nearly 80, creating quality jobs in Kenya, and with TLG behind us we can keep building.”
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Access the latest Dealmaker’s Log here