South African venture capital firm, Sencha Capital, has closed an initial funding round of $15.7 millon from a targeted fund of $34 million from a group of investors including RMB Ventures, 27four Investment Managers, the SA SME Fund, and Caleo Capital.
Founding partner, Nombuso Nkambule who made the announcement on Saturday, said the fund was targeting wider investments in traditional companies across different sectors in the southern Africa region making the tech-enabled transition into the green economy.
“The new fund has already made four investments in iG3N, Cultura Fresh, Herbivore and FarmTrace, and plans to make 10 more investments within the next five years,” Nkambule said.
He added that Secha Capital, which runs an operator-investor model, placed highly-skilled human capital resources into its portfolio companies to work on high impact value creation projects that deliver exponential growth for its entrepreneurs.
“We invest in companies at an inflection point in their growth trajectory. Most capital in Southern Africa is invested in either extremes – early-stage startups or mature companies,” Nkambule said.
“We’ve identified a gap in the market where we can find a unique proprietary pipeline and bring in our team of operator investors to achieve outsized returns,” he added.
According to information from the company, Secha Capital, which was founded in 2017 by Nkambule, Brendan Mullen and Rushil Vallabh, is an operator-investor firm that runs a model that places highly-skilled human capital resources into its portfolio companies to work on high impact value creation projects that deliver exponential growth for its entrepreneurs.
According to tech experts, the first tranche of fund has proven 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.