Cape Town-based HAVAÍC specialises in early-stage, high-growth African businesses with proven concepts and global prospects, offering investment opportunities to sophisticated investors and international venture capital companies with an interest in Africa.
The investment was secured by HAVAÍC, the ASISA Enterprise Development Fund, and Growth Grid Venture Capital Partners (“Growth Grid”).
ASISA ESD Fund (managed by Edge Growth) was an early investor in RecoMed, and has increased its equity participation with this new round.
In terms of the capital raise, R3m will be utilised in the immediate term, and the balance of R1.5m to be drawn at RecoMed’s request within six months of the initial draw down. This investment follows a previous capital equity raise of R6m from the ASISA ESD Fund in January 2016.
RecoMed enables consumers to easily book appointments with a diverse group of healthcare providers 24/7, who in turn benefit from increased patient traffic and practice efficiencies.
The company’s online booking platform is its core product, and it has developed white-labelled solutions for, amongst others, Discovery Wellness Clinics, Medicross (owned by Netcare), Biokinetics Association of SA, and several other leading national healthcare players.
RecoMed will use the funds raised to strengthen the balance sheet, fund a shift to increasing product traction and towards marketing its products and services. The short-term objectives are to complete several new integrations with leading industry healthcare software systems while steadily growing its current clientele base of 1,400 practitioners; and to double monthly bookings to 40,000 per month.
“While we exist in a complex ecosystem with massive potential, traction takes time. It’s extremely encouraging to see RecoMed’s adoption by most of the big players in the healthcare space, even in these early days,” said CEO of RecoMed, Sheraan Amod.
“Our desire to lead an investment in RecoMed is the result of how impressed we have been by the quality of the company’s product and leadership. The company has seen off a wide range of domestic competitors because of its focus on developing a platform that really works. We look forward to seeing RecoMed cement its reputation as the market leader in the industry,” said CEO of HAVAÍC, Ian Lessem.
“ASISA ESD Fund provides strategic growth funding and support to businesses that are aligned to the value chains of ASISA’s membership, which comprises most South African asset managers and insurance companies. Edge Growth’s championing of RecoMed came as we recognised the tremendous potential of a technology-enabled value proposition to our member organisations, and to the industry as a whole,” concluded Investment Head of Edge Growth, Greg Macfarlane.