BluePeak Water Logistics Business Plan — Funding Requirement & Capital Structure

Series A — sources and uses

Uses (Series A)	R m	Sources	R m
Four water tanker trucks	8.0	Series A equity	10.5
Water storage tanks	1.2	Vehicle asset finance	6.0
Depot leasehold improvements	0.8
Workshop & maintenance equipment	0.7
GPS fleet management & IT systems	0.6
Office equipment	0.4
Licences, compliance & insurance	0.5
Branding & marketing	0.8
Working capital	3.5
Total	16.5	Total	16.5

Figure 21. *Use of funds across the R16.5m Series A.*

The two-round funding structure

Consistent with the invitation to structure the raise across funding rounds, and with the brief’s equity-and-debt basis, the plan is capitalised in two stages, each blending equity and vehicle asset finance. The R16.5 million Series A (R10.5 million equity and R6.0 million asset finance) funds the launch, the four-tanker fleet, depot, dispatch and workshop, systems, market entry and working capital. A R14 million Series B in Year 3 (R8 million equity and R6 million asset finance), raised once Phase-I traction is demonstrated, funds the fleet expansion to fifteen-plus tankers, mobile treatment units and regional growth. Staging the capital reduces early dilution, matches funding to proven utilisation and contracts, and gives investors natural decision points, while asset finance keeps the equity requirement efficient.

Round	Equity	Asset finance	Total	Timing & purpose
Series A	R10.5m	R6.0m	R16.5m	Year 1 — launch & 4-tanker fleet
Series B	R8.0m	R6.0m	R14.0m	Year 3 — fleet expansion & regional
Total	R18.5m	R12.0m	R30.5m	Full three-phase build to Year 5

Debt service and gearing

Credit metric	Year 1	Year 2	Year 3	Year 4	Year 5
Asset finance (R m)	5.2	4.4	9.0	7.7	6.6
Debt service (R m)	1.62	1.39	2.82	2.42	2.08
DSCR (x)	1.42×	3.45×	3.05×	5.65×	9.69×
Net debt / EBITDA (x)	0.5×	0.5×	(0.1)×	(0.1)×	(0.3)×

Figure 22. *Asset finance and debt-service cover.*

NoteA financeable, asset-backed structure

For equity investors, the two-round structure is clean and lightly geared, with the Series B gated on proven traction. For lenders, the tanker fleet is high-quality collateral supporting vehicle asset finance with comfortable debt-service cover (above 1.4× from Year 1 and rising quickly). Either way, the key recommendation is the same: match capital to proven contracts and utilisation, diversify the customer base to protect the cash flows, and preserve the buffer against the fuel-cost and municipal-payment risks inherent in the business.