South African VC firm Secha Capital has reached a second close of its US$40 million growth fund, Secha Capital Impact (Fund II).
Launched in 2017 by Nombuso Nkambule, Brendan Mullen and Rushil Vallabh, Secha Capital runs an operator-investor 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.
Its 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. Secha Capital Fund II will follow a similar mandate, and after announcing a first close of ZAR300 million (US$18 million) in September 2023 it has now confirmed a second close at an unconfirmed amount. It is targeting a final close of ZAR650 million (US$40 million) in July of this year.
Joining the fund is E Squared Investments, a renowned impact investor founded by Allan Gray, alongside existing backers including RMB Ventures, the SA SME Fund, and 27four Investment Managers.
Secha Fund II targets essential, high-growth sectors that form the backbone of the economy – including agriculture, manufacturing, energy, and consumer goods. The fund is already 40 per cent invested across eight companies, including electronics manufacturing company Barracuda, energy startup Plentify, and controlled-environment farming company Cultura Fresh.
Secha’s Operator-Investor (OI) model embeds young, high-powered professionals directly into portfolio companies to work side-by-side with founders on sales, operations, and strategy.
The model has now evolved to include the Chief Executive Operator-Investor (CEOI) track. This provides a clear, high-impact career path for elite professionals to transition from corporate roles into C-suite leadership within the portfolio. “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.”