SOUTH AFRICA – Rand Pharmaceutical Distributors(Rand Pharm) has received investment funds from FNB Business and Edge Growth through the Vumela fund.
Edge Growth Principal and lead deal maker, Vuyiswa Nzimande, says the investment is targeted at supporting an acquisition that will boost capacity and create new partnerships that will result in sustained long-term growth.
Rand Pharmaceutical Distributors earned the fund through their long history to invest in its people and local communities. The distributors have a track record in wholesale and distribution of pharmaceutical supplies.
However, despite 20 years of industry experience, Rand Pharm was struggling with the availability of growth capital to expand their business. Consequently, the institution has been actively seeking a source of funding to bolster their ventures.
This is where Vumela funding came in to assist the pharmaceutical distributor to achieve its mission. Vumela has managed to raise about USD 45.5 million across 3 separate funds to support SMEs in South Africa.
Part of these funds have been invested in Origin maternity hospital, South Africa’s first family centred, midwife-led hospital that promotes natural birth options for pregnant women. The fund also recently invested in Kombo King , a South African kitchen equipment supplier focusing on the fried food niche market.
“Our commitment to investing in innovative entrepreneurship, is demonstrated in investments that offer unique technological advancements to competitive and job creating industries.” Heather Lowe, SME Development Head for FNB Business remarked while announcing their investment in Kombo King.
Rand Pharm MD, Sylvester Mokwele said they found Vumela fund to be the most eligible funding partner due to Vumela’s deal structuring flexibility. He continued to say that Vumela has remarkable deal closing capabilities, something that will enable Rand Pharm to grow in pharmaceutical distribution.
Heather Lowe retaliated how their efforts to support SMEs in the healthcare industry during the COVID-19 pandemic has served to ensure job creation in the pandemic affected world.
“We believe this investment in Rand Pharm is relevant to the needs of both the Healthcare sector and SMEs in South Africa and look forward to the growth this is bound to unlock for them.”