Khula Retail — Company Overview
The company’s vision, mission and values, legal structure and ownership, strategic objectives and the founding story behind Khula Retail.
Section 2 · Business Plan
Company Overview
The company’s vision, mission and values, legal structure and ownership, strategic objectives and the founding story behind Khula Retail.
2.1 Legal Structure & Registration
Khula Retail (Pty) Ltd is a private company limited by shares,
incorporated in the Republic of South Africa under the Companies Act 71
of 2008. The Company has been duly registered with the Companies and
Intellectual Property Commission (CIPC), is registered for VAT with the
South African Revenue Service (SARS), holds a workplace registration
with the Department of Employment and Labour, is registered with the
Compensation Fund and the Unemployment Insurance Fund, and has commenced
the broad-based black economic empowerment (BBBEE) verification process
targeting a Level 4 contributor status at first verification.
| Item | Detail |
|---|---|
| Registered Name | Khula Retail (Pty) Ltd |
| Trading Name | Khula Market |
| Registration Number | 2026/123456/07 (assigned upon incorporation) |
| VAT Number | Pending — application submitted post-incorporation |
| Registered Office | Gauteng Province, South Africa (specific address withheld pending lease execution) |
| Authorised Share Capital | 1 000 000 ordinary shares of no par value |
| Issued Share Capital (pre-funding) | 100 000 ordinary shares — held 100% by founders |
| Financial Year-End | 28 February |
| Auditors / Accounting Officer | To be appointed (mid-tier accounting firm) |
| Bankers | First National Bank — primary; Capitec Business — secondary |
Table 3. Corporate registration and governance details
2.2 Ownership & Shareholding (Pre-Investment)
Founders currently hold 100% of issued share capital. Following the
proposed funding round and equity component, ownership will be
restructured as follows on a fully-diluted basis:
| Shareholder Class | Shares | % Holding | Capital Contribution |
|---|---|---|---|
| Founder — Managing Director | 60 000 | 48.0% | R900 000 (cash + sweat) |
| Founder — Operations Director | 40 000 | 32.0% | R600 000 (cash + sweat) |
| Strategic Equity Partner (proposed) | 25 000 | 20.0% | R1 000 000 (cash) |
| Total Issued Capital | 125 000 | 100.0% | R2 500 000 |
Table 4. Post-investment shareholding (fully diluted)
2.3 Location Rationale
The selected catchment is a high-density residential corridor in
Gauteng with the following characteristics observed during 90 days of
pre-launch site analysis: (i) more than 24 000 households within a 2 km
radius, with a population skew toward the LSM 5–8 segment; (ii) a single
dominant supermarket chain with frequent stock-outs and limited
fresh-produce range; (iii) a cluster of complementary anchor tenants
(school, clinic, petrol station, community hall) generating consistent
cross-traffic; and (iv) sub-optimal pricing in the informal trading
layer, creating headroom for a value-led but quality-anchored
alternative.
A formal lease offer has been received for a 750 m² street-front unit
at a base rental of approximately R125/m² escalating at 7% per annum,
with a 90-day rent-free fit-out period and a five-year initial term plus
an option to renew. The lease economics fall comfortably within the
budgetary envelope set out in Section 11.
2.4 Strategic Objectives
| Horizon | Strategic Objective | Quantitative Anchor |
|---|---|---|
| Year 1 | Open store; achieve operating break-even by Month 8 | Revenue R8.6m; daily baskets 260 |
| Year 2 | Embed loyalty programme; activate e-commerce click-and-collect channel | Revenue R11.9m; loyalty 35% |
| Year 3 | Open Store 2 in adjacent catchment; reach group EBITDA margin of 15% | Group revenue R14.5m |
| Year 4 | Introduce private-label range across 3 categories | Private label 8% of revenue |
| Year 5 | Open Store 3; commence preparation for franchise/replication structure | Group revenue R19.8m |
Table 5. Five-year strategic objectives by horizon
2.5 Why Now
Three reinforcing factors make the present an unusually attractive
moment to launch a community retail concept in South Africa. First, the
post-pandemic re-rating of retail real estate has introduced new
flexibility into landlord pricing for non-mall locations, materially
improving unit-level economics. Second, supplier ecosystems —
historically biased toward large chains — have begun to formalise
programmes targeting independent retailers, lowering working-capital
intensity and improving credit terms. Third, consumer behaviour data
show a sustained shift toward smaller, more frequent shopping trips at
convenience formats, away from large monthly trips at hypermarkets — a
shift that directly favours the Khula Market footprint and
assortment.
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 Khula Retail (Pty) Ltd.