HAVAÍC, Growth Grid back Digital Cabinet with R5m
HAVAÍC, Growth Grid Venture Capital Partners and a consortium of individuals have invested R5m in Digital Cabinet.
The proceeds of this capital raise will be used by Digital Cabinet to increase its staff capacity, undertake a concerted marketing exercise with the objective of creating product and brand awareness and implementing further product development.
Asaf Ben-Nathan, Chief Technology Officer of Digital Cabinet, said: ”The company’s ability to increase staff capacity will drive additional product development which promises to result in Digital Cabinet establishing itself as a leader in document and workflow management.”
Daniel Kritzas, CEO of Digital Cabinet, added: “Increased focus on marketing and brand awareness will draw increased attention to the company and its existing range of product solutions.
Heightened awareness,” he believes, “will lead to increased enquiries from companies wishing to take advantage of Digital Cabinet’s innovations and so improve their internal processes.”
Digital Cabinet offers companies cloud-based paperless document and workflow management solutions, and is on the brink of a period of rapid growth as a result of increased focus on sales and marketing as opposed to product development on which it has focused to date; distribution agreements with partners abroad; and a partnership with Computershare for its digital post offering.
Since the commencement of the capital raising exercise, Digital Cabinet’s relationship with Computershare has deepened and the two companies are exploring new product areas on which they can colaborate.
Grant Rock, Executive Director of HAVAÍC, said: “The scale of the capital raise validates the faith that HAVAÍC showed in Digital Cabinet when HAVAÍC led the first investment in the company, a convertible loan extended in 2016.”
The convertible loan was converted into equity as part of the capital raise, resulting in strong returns for the initial group of investors.
“We believe that the calibre of Digital Cabinet’s leadership and the nature of the business alliances it is forming will result in good returns for the new investors as well,” said Rock.
Rob Ferguson, Founding Investor and Executive Director of Growth Grid believes that this joint investment “marks the beginning of a collaborative relationship between the two companies united by their interest in identifying innovative companies and the desire to provide the entrepreneurs with the financial resources and guidance to enable them to realise their powerful visions”. Source: Africa Global Funds