Karoo Rabbit Protein — Funding Requirement & Investment Proposition
The R245 million ask, the use of funds, why this is a development-finance fit and the investor returns and exit underpinning the investment proposition.
Section 14 · Business Plan
Funding Requirement & Investment Proposition
The R245 million ask, the use of funds, why this is a development-finance fit and the investor returns and exit underpinning the investment proposition.
14.1 The Ask
KRP seeks R245 million in blended capital to build the integrated
platform and carry the business to self-funding cash generation. The
structure balances risk-appropriate equity for the development phase
with senior debt sized to the asset base and a revolving facility for
the working-capital cycle.
| Development equity | R110 million (45%) |
|---|---|
| Senior term debt | R105 million (43%) — prime + 1.5% (≈12%), 10-year tenor, 2-year capital moratorium |
| Working-capital facility | R30 million (13%) — prime + 3% (≈13.5%), revolving |
| Total capital raise | R245 million |
14.2 Use of Funds
Equity and term debt fund the R169 million capital programme and the
operating losses of the build-and-ramp years; the working-capital
facility funds the grower-offtake and inventory cycle as volumes scale.
The phasing of drawdown follows the implementation roadmap in Section 9,
so that capital is deployed only as each node is built and
commissioned.
14.3 Why This Is a Development-Finance Fit
- Strong, structural development impact: smallholder inclusion,
rural jobs, food security and transformation produced directly by the
operating model. - Disease-free national herd status creating a defensible export
and food-safety credential of national strategic value. - First-mover scale that builds category infrastructure — abattoir,
cold chain, genetics, feed — with sector-wide spillover
benefits. - A blended structure and capital moratorium that match the
cash-flow profile of an agri-industrial build.
14.4 Investor Returns & Exit
The plan offers an indicative project IRR of approximately 17.4%,
positive NPV at a 15% discount rate, and an implied enterprise value of
roughly R527.9 million on a 7.0× Year-5 EBITDA exit. Realistic exit
pathways include a strategic trade sale to a larger agri-processor or
protein company, a secondary sale to a private-equity or impact
investor, or partial recapitalisation as the business matures and
de-risks. The combination of financial return and development impact is
designed to suit a development-finance-led syndicate with strategic and
impact co-investors.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Karoo Rabbit Protein (Pty) Ltd.