Africa | October 21, 2020

Secha Capital reaches first close of second fund for early-stage enterprises in South Africa

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, October 21 – Johannesburg-based Secha Capital launched its first fund in 2017 to prove the investment case for “boring” companies with solid revenues. Secha will soon close its tenth investment from the 35 million rand ($2.7 million) “proof of concept” fund. 

Secha has now also reached a first close on its second fund. The firm didn’t disclose how much it has raised; it’s targeting a $30 million final close by the end of next year. 

Secha operates as a holding company that takes equity stakes and active operating roles in its portfolio companies. It invests in healthy food, haircare and cosmetics companies. New sectors it’s exploring: energy storage and hydroponics. 

The COVID shutdown forced companies in Secha’s portfolio to pivot to survive. Hair City and nativechild, companies that sell Black hair products and cosmetics, successfully grew sales online (see, COVID-recovery financing facilities aim to bridge capital gaps for small and growing businesses)

A more recent investment, WUKINA, emerged from the pandemic, helping low-income women in South Africa earn extra income by selling high-quality wigs and hair extensions. WUKINA drew influence from U.S.-based Mayvenn, an online platform for Black hair products and services. Secha’s Brendan Mullen said the firm received guidance from Impact America Fund, a Mayvenn investor.