South African cloud storage startup Digital Cabinet has mandated investment and advisory firm HAVAÍC to undertake a ZAR5 million (US$375,000) capital raise in a bid to grow its teams, scale up its market and boost product development.
Launched six years ago, Digital Cabinet is a cloud solutions and digital post technology company focused on small and medium enterprises.
Disrupt Africa reported in July last year the startup had raised funding by way of a convertible note instrument from HAVAIC Limited Partners, the VC arm of HAVAIC Holdings South Africa, to help it on its growth path.
It is now seeking further funding, and has again started working with HAVAÍC, which specialises in early-stage, high-growth African businesses with proven concepts and global prospects.
“The capital raise is based on the company’s estimated valuation having doubled in the intervening period. Several of the convertible loan participants and all the HAVAÍC principals have committed to subscribe for additional equity. HAVAÍC is now engaging with its wider investment community to close the remaining investment opportunity,” HAVAÍC said.
Digital Cabinet offers companies cloud-based paperless document and workflow management solutions. The startup says it is on the brink of a period of rapid growth as a result of an increased focus on sales and marketing, distribution agreements with partners abroad, and a partnership with Computershare for its digital post offering.