Edge Growth Backs Mining SME uNotho with R3.5 Million

Edge Growth has provided R3.5 million in growth debt financing to uNotho Holdings, a 100% black woman-owned mining services company, to help it fulfil a commercial contract with Seriti Power.

The funding comes from the Ignite Fund, established in 2023 to provide capital and business development support to small and medium-sized enterprises (SMEs) that struggle to qualify for traditional financing. Seriti Holdings, the mining and energy group, supports the fund as part of its efforts to develop local businesses in the mining supply chain.

uNotho will use the financing to supply and deliver two waste trucks for Seriti Power. The contract gives the company an opportunity to expand its operational capacity and deliver services to an established mining customer.

According to Edge Growth, the transaction required co-funding from other lenders because the Ignite Fund's mandate for the deal was capped at R3.5 million. Khanye Nene, a deal maker at Edge Growth, said the arrangement presented coordination challenges before the funding was successfully disbursed.

Funding a Mining Services Contract

Founded in 2018, uNotho Holdings provides waste management, bulk hauling, commodity transportation and machinery rental services to the mining, construction and industrial sectors.

The company operates from Mpumalanga and has branches in North West and Gauteng. Its services support the movement of materials and equipment, as well as waste management activities required by industrial and mining operations.

Founder and managing director Makhosi Khoza is a chemist by profession with more than a decade of experience in the mining sector. She said the funding enabled the company to proceed with the supply and delivery of the two trucks required under its Seriti Power contract.

Khoza also credited Edge Growth's support in aligning the financing with the requirements of the purchase order. This is an important consideration for smaller suppliers that have secured business but need capital to acquire equipment and meet contractual delivery obligations.

Ignite Fund Targets Smaller Businesses

The Ignite Fund is part of Edge Growth's small-business financing portfolio. It offers funding options for businesses that may fall outside the lending criteria of conventional financial institutions.

According to Edge Growth, its Ignite Fund provides financing ranging from R50,000 to R5 million for needs including purchase orders, working capital, operating expenses, smaller capital investments and business expansion. Funding is provided as a loan rather than a grant, with repayment terms determined by the relevant funding arrangement. The fund also offers business development support to help entrepreneurs strengthen their operations.

For uNotho, the financing addresses a specific equipment requirement linked to an existing commercial opportunity. The company can use the two trucks to fulfil its Seriti Power contract while expanding its capacity to provide waste management and logistics services to mining customers.

The transaction also reflects the role that purchase-order financing can play in helping smaller suppliers execute contracts that require upfront spending before they can complete delivery and receive payment.