AfriServ — Funding Requirements & Use of Proceeds
The ZAR 2.0 billion funding requirement, the blended capital structure of growth equity and senior and asset-backed debt, and the detailed use of proceeds.
Section 13 · Business Plan
Funding Requirements & Use of Proceeds
The ZAR 2.0 billion funding requirement, the blended capital structure of growth equity and senior and asset-backed debt, and the detailed use of proceeds.
13.1 Capital Ask
AfriServ is raising ZAR 2.0 billion of total committed capital,
structured as a blend of equity and senior debt to optimise the
weighted-average cost of capital while preserving balance-sheet headroom
for the Phase 2 expansion. The optimal structure has been benchmarked
against the post-IPO capital structures of Bidcorp, Sysco, US Foods and
Performance Food Group.
| Capital tranche | Amount (ZAR m) | % of total | Source / structure |
|---|---|---|---|
| Common equity | 900 | 45% | Growth equity + DFI co-invest; ordinary shares |
| Convertible / preference | 300 | 15% | DFI mezzanine; 4-year horizon; convert at IPO discount |
| Senior secured debt | 600 | 30% | 5-year facility; tier-1 SA bank; secured on PPE |
| Asset-backed (fleet) | 200 | 10% | Fleet finance; 5-year amortising; secured on vehicles |
| Total committed capital | 2,000 | 100% |
13.2 Use of Funds
| Use of funds | ZAR m | Detail |
|---|---|---|
| Warehousing & cold storage | 800 | 40% — fit-out of 3 SA DCs (Year 1–2); plus expansion DCs Years 3–5 |
| Refrigerated fleet | 400 | 20% — 38 vehicles Y1; ramping to 190 by Year 5 |
| Working capital | 500 | 25% — funding inventory build and receivables ramp |
| Technology (ERP + platform) | 200 | 10% — SAP/Oracle implementation; B2B platform; WMS/TMS; BI |
| M&A / contingency | 100 | 5% — bolt-on acquisitions in Year 4–5; emergency reserve |
| Total | 2,000 | 100% |
13.3 Funding Sequence
The capital plan envisages two sequenced tranches:
- Tranche 1 — Financial close (Q3 2026): ZAR 1.5
bn drawn — equity ZAR 900m + senior debt ZAR 400m + asset-backed ZAR
200m. Funds the Year-1 build-out and provides 18 months of operating
runway. - Tranche 2 — Year 2 milestone (Q3 2028): ZAR 500m
drawn — convertible mezzanine ZAR 300m + further senior debt ZAR 200m.
Triggered by achievement of revenue and operational milestones.
13.4 Investor Protections & Governance
Standard institutional investor protections will be incorporated,
including: information rights (monthly management accounts, quarterly
board reporting); reserved matters (any single capex > ZAR 50m, any
acquisition, any change to senior management, any debt above agreed
leverage); board-seat allocation proportional to equity ownership;
pre-emption rights on subsequent issuances; and tag-along / drag-along
on any change of control. A formal shareholders’ agreement and
management-incentive scheme will be drafted in conjunction with lead
investor counsel.
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 AfriServ (Pty) Ltd.