Taking a significant minority stake in the company, Actis is backing Tekkie Town's existing management, led by founder Mr. Braam van Huyssteen, who has been the driving force behind the company's success to date.
Founded in 2001 by Mr. van Huyssteen, the company currently has over 265 stores across South Africa, selling the widest available range of global sportswear brands for value-seeking consumers. Van Huyssteen will continue to be the majority shareholder and will remain as Executive Chairman. David Cooke, Director at Actis, will join the Tekkie Town Board as Actis plays an active role in helping the company craft its future growth strategy.
Tekkie Town sits at the heart of Actis's consumer-centric approach, as a differentiated retail proposition in a high-growth sector, underpinned by the demands of brand and lifestyle-conscious African middle class consumers. Actis has a strong track record of backing high-quality consumer-focused businesses on the continent, including fabric design company Vlisco Group and food group Edita. To date Actis has invested $1.6bn in the sector.
Commenting on the investment, David Cooke, Director at Actis, said: "Braam and his team have built a fantastic business targeting the consumer segment that aligns with our investment strategy – brand aspirational, emerging middle class consumers who are looking for quality products at real value. We look forward to partnering with Braam to help the business continue its impressive growth in South Africa and to expand to other countries in the continent."
Braam van Huyssteen, Executive Chairman of Tekkie Town, said: "I am excited to have Actis on board. With its excellent track record of investing in South Africa and deep understanding of the African retail market, I am confident that together we will develop the business into a multi-national customer centric operation. We have built the business from scratch, taking it from 1 to 265 stores in 13 years, with this new partnership I look forward to creating more opportunities for the business and all of our employees."
