SOUTH AFRICA – Rand Pharmaceutical Distributors (Rand Pharm), a pharmaceutical distributor in South Africa has secured an investment from The Vumela Fund, established by FNB Business and Edge Growth.
Rand Pharm operates from one warehouse that serves the independent retail pharmacy market, dispensing to doctors, hospitals and clinics, as well as emerging markets in the townships (spaza shops and small supermarkets).
They offer a complete range of generic medicine from pharmaceutical companies including Aspen, Adcock Ingram, Cipla, Sun Pharma, Pharmadynamics, Biotech Labs and more, currently supplying clients in Gauteng, Free State, Limpopo, Mpumalanga and North West Province.
“Vumela sees an opportunity to support an acquisition that will boost capacity and create new partnerships that will result in sustained long-term growth,” said Vuyiswa Nzimande, Edge Growth Principal and lead dealmaker.
“Rand Pharmaceutical Distributors have a longstanding history in the wholesale sale and distribution of pharmaceuticals, and we are excited to support a company that invests in its people and local community.”
“We are excited to support a company that invests in its people and local community.”Vuyiswa Nzimande – Principal, Edge Growth
Rand Pharm was purposely based in a historically disadvantaged township area and provides employment to over 45 residents in the locality.
“We identified the Vumela Fund as the ideal funding partner due to their deal structuring flexibility which allows PDIs to participate in industries with high barriers to entry,” Sylvester Mokwele, Rand Pharm MD, said.
“The turnaround time to deal close was exceptionally quick and we really look forward to this relationship which will empower Rand Pharm for the future. Vuyiswa and the team were very helpful and offered us terms that will see us grow our footprint in pharmaceutical distribution.”
All of their employees – including senior management – live in the same township area and the company actively promotes and invests in the local community and its social development.
“FNB’s SME Development strategy has allowed us to play an important role in creating jobs across various industries. In light of the global efforts to respond to the COVID-19 pandemic, supporting SMEs in the healthcare industry can only serve to ensure job creation is achieved in a pandemic affected, and post pandemic world,” Heather Lowe, SME Development Head for FNB Business, said.
“We believe this investment in Rand Pharm is relevant to the needs of both the Healthcare sector and SMEs in South Africa and look forward to the growth this is bound to unlock for them.”
However, despite 20 years of industry experience, Rand Pharm was struggling with the availability of growth capital to expand their business.