Video entertainment firm MultiChoice has, to date, invested R407 million in South African tech start-ups through its innovation fund.
The MultiChoice Innovation Fund, which was launched in 2012, seeks to drive transformation in South Africa’s economy by supporting black-, women- and youth-owned enterprises in high-growth sectors, such as fintech, healthtech, edutech, broadcast technology and emerging digital media.
The fund provides financial backing, business support, supply chain access and mentorship, helping entrepreneurs move from ideation to scale-up.
According to the company, to date, 77 black-owned small businesses, with at least 50% female ownership, have benefited, resulting in the creation of more than 1 400 jobs.
It tells ITWeb via e-mail that the MultiChoice Innovation Fund has so far disbursed R407 million in loans, grants and business development expenses to assist beneficiaries in acquiring skills and assets.
Notable beneficiaries
Some of the start-ups MultiChoice has invested in include Wetility – a solar subscription service provider that offers bundled, customisable solar packages and fixed monthly subscriptions that help residential and commercial customers go partially or fully off-grid.
Last week, the video entertainment firm announced Wetility is fast emerging as one of South Africa’s most dynamic renewable energy companies. Backed in its early stages by the MultiChoice Innovation Fund, Wetility has fully repaid its loan well ahead of schedule, a rare milestone in the South African start-up landscape, said the company.
“That initial proof of concept laid the foundation for Wetility’s R930 million series A raise in 2023,” says Ikenna Oguguo, co-founder and chief product officer of Wetility. “We secured funding from a consortium, including Metier Sustainable Capital II, Sanlam and the Industrial Development Corporation.”
MultiChoice has also invested in Bothlali AI – a company that builds speech-based human-computer interaction systems to help people interact with computers using African languages.
It also supported Limu Lab – an online platform for children, which provides for the learning of indigenous African languages through entertainment, and learning via storytelling, animation, music and stimulating activities.
Another beneficiary of the fund is Seb4Vision, which offers broadcast enhancement solutions, including live on-air graphics, sports television graphics, augmented reality graphics, virtual studios/sets, virtual advertising, player tracking technology, sports analysis, touchscreen solutions, AR drone and second screen experience.
The company also invested in Gradesmatch– an educational technology company that provides career guidance, college preparation and student success services to students in Africa.
“The MultiChoice Innovation Fund is more than just a funding vehicle – it’s a catalyst for real economic transformation,” says MultiChoice.
“By backing diverse, high-potential entrepreneurs, the fund is helping to unlock innovation, create jobs, and build a more inclusive digital economy for South Africa. In a rapidly-evolving digital world, the fund remains committed to ensuring the country’s future is built by local innovators who reflect the diversity and potential of our people – enabling their growth and amplifying their impact.”
Early-stage pains
MultiChoice says many tech entrepreneurs struggle to secure the early-stage capital needed to build and scale their solutions.
“Traditional financiers often view start-ups − especially those led by young, black, or female founders − as high-risk, leaving a major funding gap,” says the firm.
Limited market access is another challenge, it adds. “Breaking into established supply chains or reaching mass markets, both locally and globally, can be difficult. Without the right partnerships or visibility, even the most innovative solutions can fail to gain traction.”
MultiChoice points out that while there's growing interest in tech, there's still a shortage of highly-skilled developers, engineers and data scientists. Small companies often can’t compete with larger firms for top talent, it notes.
According to the company, tech companies often face outdated or unclear regulations, especially in emerging sectors like fintech, healthtech and AI. It explains that navigating compliance can slow down innovation or make scaling difficult.
On commercialisation and scale, the firm says turning a prototype into a sustainable business is a major challenge. “Many start-ups need guidance on product-market fit, pricing strategies and operations to grow beyond the early stages.”
While incubators and accelerators exist, it adds, there is a need for more coordinated and long-term support – from mentorship to procurement opportunities – that nurture start-ups through the full innovation journey.
“As the MultiChoice Innovation Fund, we aim to bridge these gaps by offering not just funding, but also mentorship, market access and supply chain inclusion, especially for black-, women- and youth-owned businesses innovating and creatively solving South Africa’s issues.”
The MultiChoice Innovation Fund considers several key criteria before investing in a business. Eligible companies must operate within the information and communication technology sector and be black-owned, with a minimum B-BBEE level two or more than 51% black ownership.
“Preference is given to businesses that are youth-, female- or disabled-owned. In addition, the business should have annual revenue and assets valued at less than R50 million and must demonstrate financial soundness based on validated financial projections,” it concludes.
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