ExpressoFresh Brew Café — Funding Requirements & Use of Proceeds

Section 16 · Business Plan

Funding Requirements & Use of Proceeds

Capital Required

R3,300,000

Funding fit-out, equipment, launch marketing and working capital, with an R3.2 million NPV at a 15% discount rate.

16.1 Funding Structure

Source	Amount (R’000)	% of Total	Terms
Founder equity – Thabo Nkosi	810	24.5%	Ordinary shares
Founder equity – Amelia van der Merwe	630	19.1%	Ordinary shares
Founder equity – Daniel Jacobs	360	10.9%	Ordinary shares
Business loan	1,500	45.5%	5-year term, prime + 2%, monthly repayment
Total Funding	3,300	100%

16.2 Use of Proceeds

Application	Amount (R’000)	% of Total	Timing
Leasehold improvements	800	24.2%	Months 2–6
Coffee equipment	650	19.7%	Months 3–5
Kitchen and bakery equipment	500	15.2%	Months 3–5
Furniture and fittings	350	10.6%	Months 4–6
Working capital	900	27.3%	Months 1–12
Marketing launch	100	3.0%	Months 5–9
Total	3,300	100%

16.3 Investor Returns

The projected equity IRR of 48.2% and project IRR of 42.8% represent highly attractive risk-adjusted returns for a hospitality venture. The combination of high gross margins, relatively low capital intensity, and strong revenue growth creates a compelling return profile. Potential exit strategies include trade sale to a café franchise operator or private equity hospitality group, expansion into a multi-location café chain with subsequent trade sale or listing, and ongoing dividend distribution (commencing Year 4) with retained equity value.

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