Digital Cabinet, South Africa’s cloud storage startup, has raised R5 million. The investment was secured from a consortium of individuals led by HAVAÍC (and including its own team), and Growth Grid Venture Capital Partners (“Growth Grid”).
The proceeds of the capital raise will be used by Digital Cabinet to increase its staff capacity, undertake a concerted marketing exercise with the objective of creating product and brand awareness, implementing further product development, and improving operational efficiencies.
”The company’s ability to increase staff capacity will drive additional product development which promises to result in Digital Cabinet establishing itself as a leader in document and workflow management,” said Asaf Ben-Nathan, Chief Technology Officer of Digital Cabinet.
Digital Cabinet offers companies cloud-based paperless document and workflow management solutions and is on the brink of a period of rapid growth as a result of:
- increased focus on sales and marketing as opposed to product development on which it has focused to date;
- distribution agreements with partners abroad; and
- a partnership with Computershare for its digital post offering.
Daniel Kritzas, CEO of Digital Cabinet, adds that: “Increased focus on marketing and brand awareness will draw increased attention to the company and its existing range of product solutions.
Heightened awareness,” he believes, “will lead to increased enquiries from companies wishing to take advantage of Digital Cabinet’s innovations and so improve their internal processes.”
Since the commencement of the capital raising exercise, Digital Cabinet’s relationship with Computershare has deepened and the two companies are exploring new product areas on which they can collaborate.
“The scale of the capital raise validates the faith that HAVAÍC showed in Digital Cabinet when HAVAÍC led the first investment in the company, a convertible loan extended in 2016,” said Grant Rock, Executive Director of HAVAÍC.
The convertible loan was converted into equity as part of the capital raise, resulting in strong returns for the initial group of investors.
“We believe that the calibre of Digital Cabinet’s leadership and the nature of the business alliances it is forming will result in good returns for the new investors as well,” says Rock.