Standard Bank and the SA SME Fund have joined other investors, such as IFC, Mineworkers Investment Company, international development funders and prominent family offices, to ensure Knife Capital completes the second close of its new $50 million African Series B expansion fund, Knife Fund III.

This round brings provisional commitments to just over $40 million and Knife Capital is finalising the due diligence and legal process of a few remaining funders to close out on the $50 million target raise. 

Akash Maharaj, Executive, Equity Finance and Investments at Standard Bank Corporate and Investment Banking, commented: “Standard Bank believes in the positive impact that investment into early-stage high-growth businesses can have on innovation, job creation and economic development of South Africa. We have partnered with a number of the leading investors in this space and are excited to add Knife Capital to our venture capital portfolio. With Standard Bank’s expansive African footprint, our suite of bespoke banking products and extensive client base, we can facilitate the growth journey of businesses that scale internationally.”

Knife Capital supports businesses by selecting entrepreneurs with deep subject matter expertise, teaching them required skills and helping them gain a solid knowledge foundation for seamless growth. The investor also provides market access for these businesses and accelerates their traction by leveraging a dynamic partner network to ensure that every challenge faced by these businesses across sub-Saharan Africa is resolved sustainably.

Another means Knife Capital closes the growth gaps and creates sustainable exit-ready businesses, is through the provision of funding.

Established in 2010, Knife Capital started as the incarnation of the South African venture capital division of ‘Here Be Dragons’ – a privately owned emerging market investment group founded by internet entrepreneur and cosmonaut Mark Shuttleworth. 

Knife Capital took over the management of seven HBD portfolio companies to create a managed fund. Exits include CSense (Analytics Software) to US technology giant General Electric, Fundamo (Mobile Financial Services) to VISA and orderTalk (online food ordering software) to Uber Eats.

Keet van Zyl, Co-founder at Knife Capital expressed the company’s excitement about the investment, stating that this brings a growth partner for its portfolio companies in Standard Bank.

“With their infrastructure throughout the continent they are already proving themselves to be a value-adding banking partner that have the funds and experience to responsibly deploy capital as well as the vision to influence positive change in African emerging markets,” he added.

The round was led by Knife Capital and received participation from South Africa’s IDC and Norican, one of the world’s largest metal surface preparation and finishing equipment providers. 

DataProphet’s first VC funding was secured in 2016, from Yellowoods Capital. In 2018 and 2020 respectively, Knife Capital also invested in the company.

With the new fund, the plant manufacturer will enhance its international sales, and invest further in its industrial AI product set, while ensuring seamless growth in selected geographies and manufacturing verticals. This includes the development of a European sales office and later on, a U.S.-based sales office to support customers and partners abroad.

DataProphet works with global manufacturers to optimise production KPIs via existing plant data and machinery. The startup was founded by Frans Cronje and Daniel Schwartzkopff and provides prescriptive advice and suggested changes to manufacturers’ recipes to eliminate the possibility of defects that cause wasted efforts through product scrap or rework.

The company affirms that its flagship AI solution, PRESCRIBE, has helped clients experience a significant and practical impact on the factory floor, reducing the cost of non-quality by an average of 40%.

Made up of a team of 50 people, DataProphet focuses on automotive, semiconductor, rubber and foundry industries, and deploys its solution to manufacturing plants based in Japan, China, India, Europe, South Africa, the U.S and South America. 

DataProphet’s PRESCRIBE and end-to-end solution enables customers to receive good yields by integrating some of the lowest data levels in factories and organised data infrastructure.

With the undisclosed amount of funds, Wamly seeks to expand internationally, with Davey Gant, partner at Knife Capital, based in UK, joining the Wamly board of directors.

Wamly was founded by Francois de Wet in 2018 and is focused on achieving its goal in bridging the gap between companies in search of talented individuals required to enhance growth. The company rules out the need for in-person interviews, making the process absolutely seamless and faster.

The company’s software brings about time-saving benefits and reduces hiring hours for companies by 70%. Since its inception, the startup affirms to have completed 16,782 interviews.

Wamly’s current investment will be used to boost marketing initiatives, expand teams and enhance product development. The goal is to cement Wamly’s position as the leading software application for recruiters in the local market, as well as to start executing international expansion plans throughout Africa and beyond.

Francois de Wet is an industrial psychologist who has worked with several high profile corporates and CEOs. Over the years, his experience and observation of the inefficiencies in recruitment processes led him to develop the great idea of Wamly to help thousands of companies around the world experience time savings and a high rate of interest in businesses. Marnus Broodryk joined de Wet on the journey in 2020.

“Sometimes venture capital investments just fall into place,” says Keet van Zyl, founding partner at Knife Capital. “I have an immense amount of respect for what Marnus has achieved in the South African entrepreneurial space, and when he told me about his new venture, the team behind it and the Wamly growth metrics, Knife Capital just had to take a closer look.”

“We used Wamly for our own recruitment process during the due diligence exercise which underpinned the market opportunity. It has been a seamless journey so far and we are excited about executing on the disruptive growth strategy here.”