R6m raised for SA businesses
Equity crowd-funding platform GoGetta raised R6 million for two South African businesses – Shuthuka Flagship Farm and Trailored – in the space of six weeks, helping the companies realise their growth ambitions. For the KwaZulu-Natal- (KZN-) based macadamia farm the platform raised R4 million, while for the Gauteng-based manufacturer of customised trailers a total of R2,275 million was raised from both individual investors and venture capital investors.
According to GoGetta – which is backed by venture capital company Grovest – equity crowdfunding is the newest way to link companies looking for growth with willing investors, placing a strong focus on raising funds for African businesses.
The platform caters to businesses looking to raise between R1,5 million and R10 million from the public in exchange for shares.
“Equity crowd-funding is growing in popularity internationally, as it gives investors access to businesses in exchange for shares. GoGetta offers access to retail and institutional investors for qualifying entrepreneurs,” GoGetta co-founder Sthembiso Zwane said in a statement. The platform’s offering appeals to local and international retail, angel and venture capital investors looking to make hassle-free investments in African businesses. Investors can acquire shares in a GoGetta-vetted business for R1 000 per share.
“Investors can take comfort that businesses listed on GoGetta undergo a robust due diligence process and are vetted by experienced start-up and financing professionals.
“In fact, of the 256 businesses reviewed for a listing since January 2022, just four were approved for listing on the platform – which is a good indication of their quality,” Zwane adds. Making a significant contribution to the total funds raised for the two companies was venture capital group WDB Growth Fund. For the fund, GoGetta’s commitment to vetting the companies was the deal clincher.
“The decision to fund these businesses for an equity stake was made much easier by the extensive due diligence carried out by GoGetta ahead of any engagement with the entrepreneurs,” Oupa Monamodi of WDB Growth Fund’s investment committee said.
“The verified and credible information on each of the businesses made it easy to see the compelling case for funding both Shuthuka and Trailored,” he added.
For the business owners receiving the funds, the money means being able to get their businesses to the next level of expansion. —Moneyweb
“My father started this business in his garage. Together, we have driven significant growth and we are ready for the next phase of our expansion. The GoGetta team’s years of experience with start-ups has already added so much value in terms of sound advice and strategic direction including opening the doors for further capital,” Trailored CEO Hlanganiso Maluleke said.
“GoGetta provides so much more than a platform to showcase the business and attract investors. The team has given us great advice and leveraged its extensive network. GoGetta did a lot of work behind the scenes to find the right investor fit,” Shuthuka CEO Warwick Blamey added. Moneyweb