South Africa-based Edge Growth has secured $2.1 million to support growth-stage small and medium enterprises (SMEs) through the ASISA Enterprise and Supplier Development (ESD) Fund. Managed by Edge Growth, the ASISA ESD Fund focuses on investing in SMEs poised to drive significant social and economic impact, a crucial mission amid South Africa’s challenging economic climate.
This latest investment adds to Edge Growth’s portfolio of impactful companies, allowing it to further bolster resilient businesses. The firm already backs several South African startups, including legal tech firm TSL Legal, electronics subscription service Rentoza, logistics provider DKN Transport, and home services platform SweepSouth.
Each of these companies aligns with the ASISA ESD Fund’s objective to foster an inclusive and diverse economy, creating growth pathways for both entrepreneurs and underserved communities. Edge Growth’s investment strategy goes beyond financing, offering SMEs access to strategic advisory and market entry support to scale sustainably.
With over €115 million ($120 million) in assets under management, Edge Growth has been a steadfast supporter of South Africa’s SME ecosystem since its founding in 2007. The firm’s work addresses common challenges like funding gaps and limited business skills that can inhibit SME growth. According to Fay Mukaddam, Chairperson of the ASISA ESD Fund, the fund is especially focused on sectors capable of producing broad societal benefits. Mukaddam emphasized that its mission extends beyond financial returns, targeting projects that support historically underserved South African communities.
Among its portfolio, Rentoza stands out for its subscription-based consumer electronics model, making modern technology more accessible by reducing the initial costs for consumers. This approach addresses the high demand for affordable tech options, further reinforcing Edge Growth’s commitment to sustainable, impactful investments.
With the recent $2.1 million funding round, Edge Growth is set to deepen its support for SMEs that contribute to job creation, social value, and economic resilience. The ASISA ESD Fund recently partnered with Proparco, a French development finance institution, securing a €2 million ($2.2 million) ARIZ PRIME portfolio guarantee. This guarantee enables Edge Growth to offset the investment risks often associated with early- and growth-stage companies, allowing for a more resilient SME investment framework.
Through partnerships with organizations like Proparco, the ASISA ESD Fund remains dedicated to enabling sustainable growth and inclusive development across South Africa’s SME landscape, solidifying Edge Growth Ventures’ role as a catalyst for transformative business growth.
