Today’s top entrepreneurship and business stories (24 March)
GroTech raises R62 million for disruptive tech investments
GroTech, a Section 12J Venture Capital Company which will invest exclusively in disruptive technology opportunities, has attracted R62 million in its first round of capital raising. Of this amount, Caleo Capital, a wealth and asset management business, has invested significant capital into GroTech to help build and grow their venture capital interests.
The subscription for shares by private placement has boosted Grotech. In association with Caleo, GroTech plans to build a R200 million portfolio of disruptive high growth technology companies.
GroTech is a Section 12J Venture Capital Company where investors benefit from a 100% deduction from their taxable income of the amount invested. GroTech investors (individuals and trusts) are eligible for a 41% tax break at the time of investment (28% for companies) which mitigates the investment risk and significantly enhances the potential return. Provided the investment is held for at least five years, there is no recoupment of the tax benefit when the investment is realised.
Clive Butkow, former COO of Accenture South Africa and GroTech’s CEO says “We have funding and are ready for business, so we want to engage quality tech entrepreneurs who aim to disrupt industries and grow rapidly. Once this capital has been deployed, we will open for second round funding to investors who want to take advantage of great returns and the tax relief offered by our Section 12J status,” he says.
SA’s Silvertree Internet Holdings in joint venture to acquire Nigerian online shopping platform DealDey
Ringier Africa Deals Group, a newly-founded joint venture between Swiss Ringier Africa AG and South African Silvertree Internet Holdings (Pty) Ltd, yesterday announced it has acquired one of Nigeria’s biggest online shopping platforms, DealDey.
The acquisition represents an expansion of Ringier Africa’s portfolio beyond publishing and digital marketing in Nigeria and Silvertree’s first e-commerce investment in the country. It sees the two companies invest significantly in Nigeria’s fast-growing multi-billion dollar e-commerce sector as part of their partnership in the Ringier Africa Deals Group.
DealDey, the online deals e-commerce platform, was launched in 2011 by serial entrepreneur Simdul Shagaya together with Investment AB Kinnevik. With over 1 million users, 15,000 active merchants and 20,000 verified listed businesses, DealDey is the largest online deals business in the region. In addition to its core platform, DealDey today also comprises of the couponing platform Promohub and discovery platform Lyf, both forming part of the acquisition.
Uber launches in Abuja
Abuja, Nigeria has become the Uber’s 400th city to launch. Abuja joins the list of smart transportation hubs in Africa, including most recently, Mombasa, Kenya.
Ebi Atawodi, general manager for Uber Lagos said: “We’re really excited to be launch Uber in Abuja. Uber gives the people of Abuja an affordable, easy and flexible choice to move around the city safely and reliably.
“For those who don’t know, Uber moves around millions of global citizens every day offering affordable and reliable rides at the touch of a button. By offering a friendly and reliable complement to existing transport options, we can help improve urban mobility in Abuja, reduce traffic congestion and the environmental impact of vehicles at the same time.”