Tech in Africa
Secha Capital is a capital holding company that invests in African SMEs seeking growth opportunities. The fund primarily focuses on Agri-business and FCMG.
On Monday, Secha Capital announced the close of their second fund (Secha Capital Fund II) where they would invest R12 million into established businesses for the ownership of minority stakes.
The fund delivers an impact investment model aiming to accelerate the growth of SMEs while fostering economic growth in the small business sectors. Secha Capital Fund I was directly involved in the overall success of SMEs participating in its network.
Small businesses across the country are faced with tough barriers to growth. Examples are access to limited funding and resources, an ineffective supply chain procedures, and unfamiliar technologies.
Generally, SMEs make up 66% of the nation-wide employment as per the Small Enterprise Development Agency, (Seda). Many South African SMEs lack strategic young talent, lack management support and are excluded from vital supply chains. According to the Economic Recovery Plan SMMEs in the country are between 2.4 million to 3.5 million.
Rushil Vallabh, the MD, and co-founder of Secha Capital described the fund as proof of concept. According to statements shared on IOL, Vallabh described the first fund as proof of concept. The aim is to grow the fund across the continent.
The first fund invested in several businesses from plant-based haircare, native children to network marketing companies that empower women to start their own companies with top quality wigs. The companies have since grown tenfold creating over 100 jobs.
The team at Secha is younger, and are invested in a deep pipeline of boring fragmented market sectors. A youthful team of experts then provides them with operational support, channel access, and tech capabilities.
