Hlayisani Capital Launches $30M Venture Fund II for SA Startups

Reuel Khoza, Hlayisani Capital Group Chairperson

South African investment firm Hlayisani Capital has officially unveiled its second technology-focused venture vehicle, the Hlayisani Venture Fund II (HVF II), with ZAR500 million (US$29.9 million) in capital already committed.

The Johannesburg-based Hlayisani Capital is focused on the SME ecosystem, tackling the existing funding gap between early-stage venture capital and more traditional private equity in South Africa. 

It offers strategic support and capital to high-growth, highly scalable SMEs with a proven track record, and specialises in growing these SMEs into large, successful enterprises that operate across multiple territories, create jobs and generate export revenue domestically.

Its second fund, HVF II, has already raised ZAR500 million in commitments from a mix of institutional and private backers, led by the Public Investment Corporation (PIC) and the SA SME Fund. Hlayisani Capital is continuing discussions with potential institutional participants as it works toward a final close, scheduled for June 2026.  

Hlayisani Capital already has more than ZAR1 billion ($60 million) in assets under management, and targets high-growth, technology-enabled firms that are rooted in South Africa. The new fund is focused on Series A-stage companies that have proven product-market fit and are poised for expansion, particularly in sectors including artificial intelligence (AI), fintech, e-health, ed-tech, and digital infrastructure. 

HVF II has already invested in three portfolio companies – digital outdoor advertising operator Tractor Outdoor Media; AI startup Spatialedge, which builds enterprise-grade machine learning tools to help businesses make faster, data-driven decisions; and Cogitait AI, which develops AI technologies to enhance automation and operational intelligence for commercial users.

Source: Disrupt Africa