Secha Capital
Investing in African companies

Investment

Operating company investments

We have strong beliefs in what makes a great company

 

Key Attributes of great companies

  • Growing (niche) market
  • Large addressable market
  • Revenue visibility / predictability
  • Positive gross margins
  • Customer concentration
  • Customer lock in / high switching costs
  • Organic demand vs required marketing spend
  • Presence of network effects
  • Strong team
  • Sustainable competitive advantage
  • Lack of partner dependencies

Key attributes of great AFRICAN companies

  • Founder-run
  • Simple revenue model, stress margin over revenue
  • Expandable market not at risk of changes in imports/exports or government intervention
  • Ruthless focus on distribution
  • Segmented / prioritised, multi-tier sales channels
  • Clear product advantage: e.g. localised, bundled, an enabling service, it cultivates a customer peer group
  • High frequency use case designed to increase incremental purchases
  • Strong scale cost advantage with reliable supply chain
  • Salient brand in both modern and traditional trade
 
Operating company investments coming soon