A new venture capital fund launched by Tiger Brands, owner of brands like All Gold, Black Cat and Koo, has announced its first investment: a company that produces plant-based and vegan products.
Herbivore Earthfoods is a Cape Town-based, women-founded business which was started in 2014 with the aim of making plant-based foods affordable in South Africa.
Tiger Brands’ venture capital fund was launched in mid-2021 with the aim of driving growth for the company by investing in innovative businesses based in sub-Saharan Africa which offer healthier eating options in line with the latest consumer trends.
Together with private equity firm Secha Capital as co-investor, the fund has become a minority shareholder in Herbivore Earthfoods.
"[Our investment] is a compelling opportunity, where we are very proud to back innovative entrepreneurs...Our partnership with the Herbivore team will involve leveraging each other's combined strengths to achieve their growth strategy and to push the boundaries of an affordable and healthy alternative product offering to consumers," says Barati Mahloele, Venture Capital Fund director of Tiger Brands.
For Herbivore Earthfoods director Davey du Plessis, the strategic partnership with Tiger Brands and Secha Capital will enable the company to capitalise on trends in the plant-based food and food technology space.
Although the amount of the investment was not made public, Tiger Brands has indicated that it is a multi-million rand investment with the Tiger Brands Venture Capital Fund and Secha Capital investing equally in Herbivore Earthfoods. The initial committed capital of the Tiger Brands Venture Capital Fund is R100 million in total.