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Secha Capital Fund II Hits First Close

Anna Lyudvig
Sept. 29, 2023, 12:48 p.m.
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Secha Capital has announced a first close of its second fund, with R300m in investments from blue-chip investors RMB - Rand Merchant Bank Ventures, 27four Investment Managers, SA SME Fund and Caleo Capital. 

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Secha Capital has announced a first close of its second fund, with R300m in investments from blue-chip investors RMB - Rand Merchant Bank Ventures, 27four Investment Managers, SA SME Fund and Caleo Capital. 

Brian Waweru of RMB Ventures (pictured), 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.”

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.”

Founded in 2017, Secha Capital is a black, female-founded fund manager. 

The fund invests in traditional companies across sectors in Southern Africa that are making the tech-enabled transition into the green economy.

This first close of the R650m fund enables the team to deploy its unique Operator-Investor model, which places highly skilled human capital resources into Secha’s portfolio companies to work on high impact value creation projects that deliver exponential growth for its entrepreneurs.

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.

“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 Rushil Vallabh, MD at Secha Capital.

 Brendan Mullen, co-founder and MD at Sacha Capital, added: “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,” he said.

Ridwaan Kajee of 27four Investment Managers, commented: “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.”

 

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