USD 10 M
Sole Advisor & Arranger
Verdant Capital Sole Advisor & Arranger for USD 10 M Debt and Equity Capital Raise for Retail Capital
Retail Capital has successfully raised ZAR 150 million in debt funding from Triodos Investment Management, a leading Netherlands-based Impact Investor. The first tranche of ZAR 50 million was drawn during the month of October and the balance of which will be drawn in 2022.
Retail Capital is the first and largest Merchant Cash Advance provider in the South African SME market. The company was established ten years ago, and it has disbursed over ZAR 4.5 billion to more than 38 000 merchants since inception. It is on target to disburse ZAR 8 billion to small businesses by 2023.
The business’ approach is to always lead with technology and work alongside SME clients where advance repayments are based on their monthly turnover and a set repayment percentage. Retail Capital charges a fixed fee over the duration of the advance, with no upfront costs, hidden fees or collateral required. This is what set Retail Capital apart from the traditional banks and other competitors who require assets to be pledged as security. Retail Capital continues to make strategic partnerships by working with fintech companies to fast-track the financial inclusion of SMEs. Retail Capital has contributed enormously to promoting entrepreneurship as a sustainable way for South Africans to build a better livelihood.
In its growth, Retail Capital has been supported by shareholders from amongst the leading private equity firms investing in Africa, APIS, Crossfin and Future Growth. The raise is the second transaction in as many months that Verdant Capital has completed for portfolio companies of top tier private equity firms.
Retail Capital continues to diversify its funding base, raising debt capital from local and international investors through its successful Medium Term Note Programme. The successful raise is the third transaction for which Verdant Capital has acted as sole international arranger and advisor for Retail Capital, having raised ZAR 25 million and ZAR 108 million debt financing in 2018 and 2020 respectively. This transaction reinforces Verdant Capital’s position as a leading advisor and arranger for Inclusive Financial Institutions in Africa.
About Triodos Investment Management
Triodos Investment Management connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, we serve as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane.
We have built up in-depth knowledge throughout our 25+ years of impact investing in sectors such as Energy & Climate, Financial Inclusion and Sustainable Food & Agriculture. We also invest in listed companies that materially contribute to the transition toward a sustainable society. Assets under management as per end of June 2021: EUR 6.1 billion.
Triodos Investment Management is a globally active impact investor and a wholly owned subsidiary of Triodos Bank NV.