Secha Capital, a South African venture capital firm, has completed the second close of its US$40 million growth fund, Secha Capital Impact (Fund II).
Established in 2017 by Nombuso Nkambule, Brendan Mullen, and Rushil Vallabh, Secha Capital employs an operator-investor model that assigns highly qualified human capital resources to its portfolio companies to work on high-impact value creation projects that provide its entrepreneurs with exponential growth.
Its first fund demonstrated that the combination of human capital and equity investments for growth-stage companies is a replicable model for producing both financial returns and social impact, especially in South African women-founded businesses.
Similar guidelines will be followed by Secha Capital Fund II, which has confirmed a second close at an unspecified sum after announcing a first close of ZAR300 million (US$18 million) in September 2023. In July of this year, it hopes to reach a final close of ZAR650 million (US$40 million).
Along with current backers RMB Ventures, the SA SME Fund, and 27four Investment Managers, E Squared Investments, a well-known impact investor founded by Allan Gray, has joined the fund.
Secha Fund II focuses on vital, fast-growing industries that support the economy, such as consumer goods, manufacturing, energy, and agriculture. Eight businesses, including electronics manufacturer Barracuda, energy startup Plentify, and controlled-environment farming company Cultura Fresh, have already received 40% of the fund’s investments.
Young, accomplished professionals are directly integrated into portfolio companies through Secha’s Operator-Investor (OI) model, where they collaborate with founders on strategy, operations, and sales.
The Chief Executive Operator-Investor (CEOI) track is now a part of the model. Elite professionals can move from corporate roles into C-suite leadership within the portfolio with this clear, high-impact career path.
“Most investors provide capital and advice. We provide execution. By embedding the right operators next to founders, we turn strategy into results and potential into performance,” said Rushil Vallabh, co-founder of Secha Capital.
“We invest in the businesses people rely on every day, both today and in the future,” said Brendan Mullen, co-founder of Secha Capital. “By making these companies run better and grow faster, we deliver on a dual mandate of strong financial returns and systemic social impact.”
