South African venture capital firm Secha Capital has announced the second close of its US$40 million (approximately R650 million) growth fund, Secha Capital Impact (Fund II), marking a significant milestone in its mission to bolster growth-stage businesses across the region. This development follows an initial close of ZAR300 million (US$18 million) in September 2023, with the firm targeting a final close of the full US$40 million by July of the current year .
Founded in 2017 by Nombuso Nkambule, Brendan Mullen, and Rushil Vallabh, Secha Capital distinguishes itself through its unique operator-investor model. This approach involves embedding highly skilled human capital directly into portfolio companies, where professionals work alongside entrepreneurs on high-impact value creation projects.
This hands-on strategy is designed to deliver exponential growth and has been validated by the success of its inaugural fund, which demonstrated the replicability of combining equity investments with human capital to generate both robust financial returns and measurable social impact, particularly within women-founded businesses in South Africa.
The firm’s investment thesis for Fund II remains consistent, focusing on essential, high-growth sectors that underpin the economy. These include agriculture, manufacturing, energy, and consumer goods. Already, 40 per cent of the fund has been deployed across eight companies, with notable investments in electronics manufacturer Barracuda, energy startup Plentify, and controlled-environment farming company Cultura Fresh. This strategic sector focus aligns with broader trends in South Africa’s private equity landscape, which in 2026 is seeing an evolution in how growth capital is deployed, with an emphasis on tangible economic contributions.
Secha’s Operator-Investor (OI) model has evolved to include a Chief Executive Operator-Investor (CEOI) track, providing a structured career pathway for experienced professionals to transition from corporate roles into C-suite leadership positions within the portfolio. This innovative model is seen as a crucial differentiator in the African venture capital ecosystem, which often grapples with a shortage of experienced operational talent. As co-founder Rushil Vallabh articulated, the firm’s value proposition extends beyond capital and advice to direct execution, transforming strategic potential into tangible performance through embedded operational expertise.
The latest close has attracted new institutional backing, notably from E Squared Investments, a prominent impact investor established by Allan Gray. E Squared is known for its commitment to supporting high-growth businesses and early-stage founders, aligning with Secha Capital’s dual mandate of financial returns and systemic social impact. Existing investors, including RMB Ventures, the SA SME Fund, and 27four Investment Managers, have also reaffirmed their commitment, underscoring continued confidence in Secha’s distinctive investment strategy and its ability to foster sustainable growth in critical sectors.
Brendan Mullen, co-founder of Secha Capital, highlighted the firm’s dedication to investing in businesses that form the backbone of daily life, both presently and in the future. By enhancing the operational efficiency and accelerating the growth of these companies, Secha Capital aims to fulfil its dual mandate, contributing to both robust financial outcomes for its investors and significant social impact within the communities it serves.