KotaVille — Funding Requirements and Use of Proceeds
12.1 Capital Structure
Section 12 · Business Plan
Funding Requirements and Use of Proceeds
12.1 Capital Structure
Total Investment Required
ZAR 1,580,000
Funded 27.5% founder equity, 27.5% investor equity (ordinary shares, 52% target IRR) and 45% term loan from a bank or DFI.
12.1 Capital Structure
| Funding Source | Amount (ZAR) | % of Total | Terms |
|---|---|---|---|
| Founder Equity | 434,500 | 27.5% | Sweat equity + cash |
| Investor Equity | 434,500 | 27.5% | Ordinary shares, 52% target IRR |
| Term Loan (Bank/DFI) | 711,000 | 45% | 5-year, Prime + 3%, monthly repay |
| TOTAL | 1,580,000 | 100% |
12.2 Use of Proceeds
Figure
| Use of Funds | Amount (ZAR) | % of Total |
|---|---|---|
| Leasehold improvements & fit-out | 520,000 | 32.9% |
| Kitchen equipment & fryers | 380,000 | 24.1% |
| Working capital (6 months buffer) | 280,000 | 17.7% |
| Marketing & grand opening | 150,000 | 9.5% |
| Branding, signage & design | 120,000 | 7.6% |
| Technology & POS systems | 80,000 | 5.1% |
| Licensing, permits & legal | 50,000 | 3.2% |
| TOTAL | 1,580,000 | 100% |
12.3 Investor Returns
| Return Metric | Base Case |
|---|---|
| Target IRR (5-year) | 52% |
| Payback Period | 2.4 years |
| Multiple on Invested Capital (MOIC) | 4.2x |
| Cumulative Dividends (5 years) | ZAR 1,050,000 |
| Projected Exit Value (Year 5) | ZAR 24.6M (5x EBITDA) |
| Investor Share of Exit (27.5%) | ZAR 6.77M |
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