VisionCare Eye Clinic — Funding Request & Use of Funds
The R8.30 million funding request, the equity and debt structure, and the detailed use of funds across fit-out, equipment, working capital and launch.
Section 11 · Business Plan
Funding Request & Use of Funds
The R8.30 million funding request, the equity and debt structure, and the detailed use of funds across fit-out, equipment, working capital and launch.
VisionCare Eye Clinic seeks R 8.30 million (approximately USD
450,000) in combined equity and debt financing to complete Phase 1
build-out and fund working-capital requirements through the revenue-ramp
period. The capital structure is calibrated to balance founder control,
investor returns, and conservative debt service coverage.
11.1 Funding Structure
| Instrument | Amount (R) | % of Total | Key Terms |
|---|---|---|---|
| Founder / promoter equity | 1,500,000 | 18.1% | Ordinary shares; fully subscribed at Month 0; 18.1% economic interest |
| Series A equity (external) | 3,000,000 | 36.1% | Ordinary shares; 36.1% economic interest; Shareholders’ Agreement with standard protections (tag-along, drag-along, pre-emptive, reserved matters, Board seat) |
| Senior term debt | 3,800,000 | 45.8% | 5-year amortising facility; prime + 1.5%; secured by first-ranking notarial bond over equipment and cession of trade receivables; personal surety by founder capped at R500,000 |
| TOTAL | 8,300,000 | 100.0% |
11.2 Use of Funds
The R 8.30 million is deployed across the categories shown below,
tracking the Gantt sequence set out in Section 8. The founder and Series
A equity fund the one-off fixed investment and launch marketing; the
term debt funds equipment purchases and working-capital reserve.
| Use of Funds Category | Amount (R) | % of Total | Funding Source |
|---|---|---|---|
| Medical diagnostic equipment (Phase 1) | 3,200,000 | 38.6% | Debt |
| Premises fit-out & build-out | 1,500,000 | 18.1% | Equity |
| Working-capital reserve (6 months) | 1,800,000 | 21.7% | Mixed |
| Initial inventory (frames, lenses, consumables) | 650,000 | 7.8% | Debt |
| IT systems and EMR implementation | 450,000 | 5.4% | Equity |
| Licensing, legal, professional fees | 280,000 | 3.4% | Equity |
| Marketing, branding & pre-launch campaign | 220,000 | 2.7% | Equity |
| Contingency reserve | 200,000 | 2.4% | Equity |
| TOTAL | 8,300,000 | 100.0% | R 4.5M equity + R 3.8M debt |
11.3 Debt Service Capacity
The projected debt service coverage ratio (DSCR) demonstrates that
operating cash flow comfortably covers principal and interest
obligations from Year 2 onward. The Year 1 DSCR of 0.8× reflects the
expected start-up loss; the six-month working-capital reserve is
structured specifically to cover this period.
| R ‘000 (unless noted) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA | (1,350) | 2,895 | 7,346 | 11,516 | 15,454 |
| Less: Tax paid | 0 | (563) | (1,657) | (2,685) | (3,770) |
| Cash available for debt service | (1,350) | 2,332 | 5,689 | 8,831 | 11,684 |
| Debt service (P + I) | 1,070 | 1,060 | 1,040 | 1,020 | 990 |
| Debt Service Coverage Ratio | neg. | 2.2× | 5.5× | 8.7× | 11.8× |
| Loan balance (year-end) | 3,150 | 2,500 | 3,300 | 2,550 | 1,750 |
11.4 Equity Investor Terms
The Shareholders’ Agreement governing the Series A investment will
include the following standard emerging-markets investor
protections:
- Board representation: one Board seat
proportional to 36.1% shareholding; plus observer rights at the Audit
& Risk Committee. - Reserved matters: investor consent required for
(i) new share issuances, (ii) M&A transactions, (iii) capex above
R500,000 in a single transaction, (iv) changes in business scope, (v)
related-party transactions, (vi) dividend declarations, (vii) CEO/CFO
appointment or removal. - Pre-emptive rights: on all future share
issuances in proportion to the existing shareholding. - Tag-along rights: enabling the Series A investor
to participate pro-rata in any founder share sale. - Drag-along rights: exercisable by a 75%
shareholder supermajority to enable a clean exit to a buyer. - Information rights: monthly management accounts
within 15 days of month-end; audited annual financial statements within
90 days; access to management for quarterly business reviews. - Anti-dilution protection: broad-based
weighted-average ratchet in the event of future down-rounds. - Exit mechanism: a structured five-year exit
window with promoter obligation to pursue a sale, strategic acquisition,
or IPO between Year 5 and Year 7, failing which a put option activates
at the higher of fair market value or 2.5× invested capital.
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 VisionCare Eye Clinic (Pty) Ltd.