Ota Growth

HEVA is launching Ota Growth, part of the Sanara program, to invest in creative businesses in Kenya which are operating in the following value chains:

• Fashion, Garments, Beauty and Accessories

• Film, TV, Content Creation, Gaming and Audio-Visual 

• Live Music, Theatre and Performing Arts

Ota Growth is a loan facility featuring targeted debt investments. This means that eligible businesses can apply for a minimum of KES 5,000,000 and a maximum of KES 20,000,000 at a rate of 9% interest. Ota Growth will disburse loans between the period of 1st December 2024 and 31st December 2026. 

You can apply for an Ota Growth Loan between September 2024 and December 2026.

Main Categories of Financing Available:

Below are the main financing categories available under Ota Growth. A further breakdown of the loan types that your business can apply for is detailed in the section after:

1. Working capital: Financing for operational costs such as hiring new employees, paying salaries, renting new inventory, locations, etc. all within a 1 year timeline.

2. Asset Finance: Financing for the purchase of equipment, machinery and software. 

3. Trade Finance: This refers to LPO Financing, invoice discounting, letter of credit facilitation, contract financing and project financing.

Business support remains a crucial component of HEVA’s fund strategy. As such, borrowers of Ota Growth loans will also receive pre-financing and post-financing support, financial modelling, legal, tax, human resource, accounting, and cash flow management support, as well as access to training and international platforms for wider market access.

This facility aims to stimulate the growth of cultural and creative industries (CCIs) in Kenya by creating new jobs. Ota Growth will give special consideration to companies committed to working with young women, people with disabilities, and refugees. 

What Type of Financing Can Your Business Apply For?

Your organisation’s value chain will determine the type of loan you can apply for:

Organisations in Fashion, Garments and Accessories can apply for:

• Working capital loan

• Equipment loan

• Inventory loan

• Invoice discounting

• Term loan

Organisations in Film, TV, Content Creation, Gaming and Audio-Visual can apply for:

• Equipment loan

• Inventory loan

• Promotion finance

• Production loan

• Invoice discounting

• LPO financing

• Contract financing

Organisations in Live Music, Theatre and Performing Arts can apply for:

• Working capital loan

• Event & production financing

• Marketing and merchandising loan

• Equipment & infrastructure loan 

The definitions for the loan products above are as follows:

1. Working capital loan - financing that helps organisations with their day-to-day operational expenses

2. Equipment loan- financing used to purchase equipment needed for business operations

3. Inventory loan - financing for organisations to borrow funds by using their inventory as collateral.

4. Invoice discounting -  financing that allows organisations to borrow money against their outstanding invoices. It is useful when organisations need immediate cash flow to cover operational costs, produce new collections, or invest in growth opportunities.

5. Term loan - financing where a business borrows for funding significant investment, e.g. expanding business, investing in new technology 

6. Promotion financing - financing aimed at supporting marketing and promotional activities within a organisation, e.g. branding and visibility

7. Production loan - financing specifically designed to help cover the costs associated with production.

8. LPO financing - this is a short-term loan facility that provides the necessary funds to fulfil purchase orders

ELIGIBILITY AND REQUIREMENTS

Key requirements for each applicant are:

1. Your organisation/business must be registered and operational in Kenya for at least two (2) years. At least 51% of company shareholders must be citizens of Kenya. 

2. Your organisation must be in any of the following creative and cultural value chains:

• Fashion, Garments, Beauty and Accessories:  

This includes - Fashion designers, Beadmakers, Jewellers, Tailors, MakeUp Artists, Hair and Beauty Salons, Nail technicians, Hair and Beauty product manufacturers, tattoo artists, stylists, fashion retailers, etc.

• Film, TV, Content Creation, Gaming and Audio-Visual:

This includes - Radio and TV stations, TV and Film Production Studios, Advertising agencies, Scriptwriters, Podcasters, Vloggers, Game development studios, Esports companies, Extended Reality, Virtual Reality and Augmented Reality Developers, VOD and Streaming platforms, etc.

• Live Music, Theatre and Performing Arts:

This includes - Music production studios, companies that produce performance arts (comedy, theatre, dance, poetry), live bands and rehearsal spaces, event companies, etc. 

3. Your organisation/business must be able to demonstrate a resident team (permanent or part-time) and a minimum of four (4) permanent employees. Applicants must prove that at least 5% of employees are from marginalised groups and that the company has dedicated personnel with an accounting capacity. 

4. You must have valid financial statements either audited accounts or management accounts for at least 2 years . Applicants will also be required to provide at least 2 years bank statements and or mpesa statements, a demonstration of credit history and tax compliance, past insurance coverage, and legal documentation to demonstrate service and previous works contracted and completed.

APPLICATION PROCESS AND TIMELINE

First Open Call For Applications

Applicants who complete the application form will be notified that we have received their application. Please note we will require the following documents during the application:

• Registration certificate

• At least 2 years audited Financial statements or management accounts 

• At least 2 years bank statements or mpesa statements 

• A filled in company profile (use only the template provided in the application form. Applications that don’t use the template will be disqualified)

• A filled in budget (use only the template provided in the application form. Applications that don’t use the template will be disqualified)

• Shareholding/management and governance structure through an attached CR12

Q&A Session

(September 2024 - Exact Date TBC)

HEVA will host a virtual information session for prospective applicants. We will respond to any unanswered questions about the application process, requirements, use of funds, facility support and the SANARA program. Priority will be given to questions sent in beforehand via email and social media DMs. We will also address any questions asked during the live session.  A recording of the session will be made available on HEVA’s Youtube channel for future reference. 

REVIEW PROCESS AND TIMELINE

First Review (October 2024)

This will result in a shortlist of eligible applications that have been reviewed by two panels, the business panel and the investment panel, which will evaluate the financial and creative elements of the application. All applicants will be notified about the status of their application after the first reviews are done.

Pitch Prep (October - November 2024)

Applicants who make it through the first review will be notified that they have been selected to prepare and present a direct pitch of their business and investment plan. They will be provided with a pitch deck template to help them compile the information needed by the panel. Applicants will be given 1 week to prepare. 

Pitch Time (November 2024)

Pitching sessions happen. A further shortlist of stand-out businesses eligible for financing is compiled after the pitches.

Commitment letters are sent to all successful pitches, detailing the next processes of due diligence and financial modelling, which can proceed once the businesses agree to the given terms.

Due Diligence  (November 2024)

Due diligence visits to applicants with successful pitches are made.

Financial Modelling (December 2024)

Applicants who make it through due diligence proceed into collaborative financial modelling meetings with the HEVA team.

Final Successful Applicants (December 2024)

The final list of successful applicants is made available, and letters of offer are written to the finalists.

FAQs

We have prepared an Ota Growth FAQ’s document. Click the button below to read it in case of any further enquiries email us on sanara@hevafund.com

APPLY NOW

If you have read through the eligibility and requirements and are ready to apply for an Ota Growth loan, click the button below to be redirected to the application form—powered by Typeform.