HAVAIC Limited Partners, the venture capital arm of HAVAIC Holdings South Africa, has invested in Digital Cabinet, a cloud solutions and digital post technology company, by way of a convertible note instrument.

Grant Rock, Executive Director of HAVAIC, said: “The exact investment amount is private – less than R5m.”

HAVAIC Limited Partners invests in early stage South African and African businesses that take advantage of globally competitive home-grown skill sets with potential to scale internationally.

“HAVAIC VC is a newly formed fund backed by private investors. At this stage, amounts of the fund are private,” Rock told Africa Global Funds.

The investment will be used to help Digital Cabinet to continue on its current growth path in South Africa as well as expand internationally.

In addition to providing growth funding, HAVAIC has assembled a team of leading industry specialists who add significant value on a day to day and strategic basis for all its investments and management teams.

Daniel Kritzas, CEO of Digital Cabinet, said: “Digital Cabinet has been operating for about 5 years and we have seen our business mature to the extent that we require further capital to both expand with new products and consolidate our existing offerings. Historically, our business focused on small and medium enterprises who required our cloud storage solutions. Of late, we are also targeting large corporations with our document and forms management solutions and our newly launched digital document delivery offering.”

“We have been working with HAVAIC for several months and look forward to their ongoing input and value-add to our business. The funds provided by HAVAIC will allow us to capture new markets, boost our development capability and infrastructure and broaden our online marketing initiatives to increase revenue,” he added.

Ian Lessem, CEO of HAVAIC, added: “HAVAIC is proud to have invested in Digital Cabinet, knowing that not only is it a strategic use of capital and resources, but it’s a unique opportunity to work with a rising star in the tech world that is in the process of leveraging its home grown market leading resources and IP in the global cloud solutions and digital communications and storage arena.”

HAVAIC’s investment thesis centers around taking advantage of home grown talents, typically relating to software/tech, marketing/PR and finance, all being relevant in the local context, as well as internationally, and has positioned itself to invest in circa five investment companies by way of minority positions in 2016 and has a strong pipeline for 2017 and beyond.