Specialist investment bank and investment manager Verdant Capital has closed private equity-related transactions in South Africa, with fund raisings for Bridge Taxi Finance and Retail Capital.
Verdant has successfully raised R300-million in debt financing for Bridge Taxi Finance from a small group of international impact investors.
The funding will be used to grow Bridge Taxi Finance’s lease portfolio.
Bridge Taxi Finance, based in South Africa, provides affordable credit facilities to South African driver-entrepreneurs in the minibus taxi industry.
It has a vertically integrated business model that includes impact vehicle finance, day-to-day tracking, advice and management, and vehicle repairs and services.
The transaction is the first introduction for Bridge Taxi into the international markets. Bridge Taxi is majority owned by the founders, with a minority held by domestic private equity.
Moreover, Verdant has raised R150-million in debt funding for Retail Capital, a technology-enabled small and medium-sized enterprise (SME) financer.
The first tranche of R50-million was drawn in October and the balance will be drawn in 2022.
Retail Capital is the first and largest Merchant Cash Advance provider in the South African SME market. It continues to enter into strategic partnerships by working with fintech companies to fast-track the financial inclusion of SMEs.
The successful raise is the third transaction for which Verdant has acted as sole international arranger and adviser for Retail Capital.