Supported ventures

African Applied Chemical

African Applied Chemical (Pty) Ltd

Brands: Bi-Ko™ Slow Release Technology, NoBuzz®, Vikela™

Flagship product: Long-Lasting Insecticidal Mosquito Nets

Founding team: Dr Mthokozisi Sibanda & Dr Sthembile Valencia Sibanda

Application: Slow-release insect repellent & volatile organic chemicals fibre

Sector/Industry: Health and Pharmaceuticals

Subsector: Vector Control and Public Health Products 

Year founded and commenced operations: 2018

Year partnered with TuksNovation: 2020

Website: africanappliedchemical.co.za 

LinkedIn: linkedin.com/company/african-applied-chemical 

Facebook: facebook.com/africanapplied/ 

Instagram: instagram.com/africanapplied/ 

 

Description

AAC has prototyped a Long-Lasting Insecticidal Mosquito Net (LLIN) called Vikela™ that uses Bi-Ko™ slow-release technology to release a novel natural insecticide called Nootkatone.  This technology is made up of a specially engineered textile fibre that is designed to hold and slowly release volatile organic chemicals over a long period of time. In this manner, the technology reduces the amount of organic chemical lost due to evaporation which reduces the cost of using the chemical. 

AAC also uses the Bi-Ko™ slow-release technology to develop and manufacture a number of other innovative and high value products. The Bi-Ko™ slow-release technology is patented by the University of Pretoria in South Africa and Aripo countries. AAC is the exclusive license holder of the technology.

Growth Objectives

African Applied Chemical (AAC) has moved past the Seed funding round and is seeking Series A funding  to support the following critical objectives:

  • Completion of Phase II trials in Tanzania, aimed at testing the effectiveness of their “Next generation long lasting insecticide treated net (Vikela™)” in real-world conditions. 
  • Conducting further studies on active release, mechanical strength, and flame retardancy to assess the product’s shelf life and safety.
  • Submission of the registration dossier to the World Health Organization (WHO) for product registration, which is crucial for market entry.
  • Achieving ISO 9000 compliance, which is necessary for international standards in manufacturing and quality control.
  • Market awareness activities to build brand recognition while the product is under WHO consideration. This funding will help AAC move closer to commercial readiness and market entry, ensuring they can meet the stringent requirements for their innovative mosquito nets.

Differentiation/Value Proposition

AAC’s value proposition centers around their proprietary Bi-Ko™ slow-release technology, which allows for the cost-effective and prolonged release of expensive and volatile chemicals.

Specifically for their mosquito nets:

  • Innovative Insecticide Use: Vikela™ incorporates Nootkatone, a natural insecticide safe for human use, alongside pyrethroids, addressing the issue of insecticide-resistant mosquitoes without the safety concerns associated with other chemicals like chlorfenapyr used by competitors.
  • Extended Efficacy: The slow-release mechanism ensures the insecticide remains effective for longer periods, reducing the need for frequent reapplication, thus lowering costs and increasing product lifespan.
  • Environmental and Health Safety: Using a natural insecticide reduces potential environmental impact and health risks to users, setting AAC apart in a market where safety is paramount.

Business Stage/Phase

AAC is currently in the Development and Early Commercialization Phase.

They have:

  • Developed and patented their Bi-Ko™ technology.
  • Generated initial revenue through products like long-lasting insect repellent textiles and pheromone systems.
  • Completed Phase I trials for Vikela™, with Phase II trials underway, indicating they are close to a market-ready product but still in the validation and regulatory approval stage.

Investment Stage/Phase

The company is at the Series A Investment Stage. This stage is focused on:

  • Scaling up operations for commercial production.
  • Completing necessary product trials and regulatory approvals for market entry.
  • Building out the team to handle increased business demands and market penetration.

Investment Raised

AAC has raised funding from various sources so far:

  • R1.5 million from the University Technology Fund.
  • R6.4 million from IDC in 2019.
  • R800K grant from South African Breweries Foundation in 2020.
  • R430K from TIA in 2018.
  • R150K from Social Innovation Awards in 2016.
  • R200K from Gauteng Accelerator Program in 2016.

These investments have supported the initial development and proof of concept phases, with the current ask for Series A funding aimed at pushing the product through to full market readiness and initial sales.