In an industry often defined by dazzling success stories, few entrepreneurs have the courage to pull back the curtain on the hard, often brutal truth behind a massive business failure. Lekau Sehoana, the visionary founder who took Drip Footwear from a township dream to a national obsession, is one of them.
In a candid and powerful interview with Relebogile Mabotja, Sehoana doesn’t just chronicle the explosive rise of his multi-million rand company; he details the single, critical flaw that led to its dramatic liquidation. After stepping away from the spotlight for a year of intense self-reflection, Sehoana opens up about the crippling compliance crisis that blocked his ability to trade, the immense personal cost of losing his company and his marriage, and the emotional burden of laying off hundreds of staff.
This is the unfiltered story of a brand that was too big, too fast, and ultimately, too vulnerable. More than just an autopsy of a business, it is a raw blueprint for resilience—a look at how Sehoana healed, learned the hardest lessons of entrepreneurship, and is now ready to take “Take Flight” again with his new venture, Kite.
I. Introduction: The Man and the Moment
- Guest: Lekau Sehoana, the founder of Drip Footwear and the Drip Group.
- Context: After a year-long hiatus from the fashion world, Lekau speaks openly about the spectacular rise and ultimate collapse of his multi-million rand company.
- Current State: Lekau took a necessary year-long break for introspection and healing, acknowledging he is “highly blessed and favored” today [01:17].
II. From Humble Beginnings to Footwear Phenomenon
- The Roots of Entrepreneurship: Growing up in the tough environment of Ivory Park after moving from Limpopo, poverty fueled a consciousness to seek a different path for his family [03:21].
- The Birth of a Passion: Lekau learned to sew from his grandmother and, out of necessity, started making his own shoes from denim and recycled leather in high school (2003), falling in love with fashion and creative expression [04:03].
- The Capital Grind: After failing to raise capital through early side hustles (poultry, shisanyama), he sought education and corporate work for better access to funds, before being laid off from his construction contract job [08:05].
- Founding Drip: With a laser-focus on building one great product, Drip was conceptualized, fusing local culture with Hip-Hop influences like Kanye and Jay-Z. The name ‘Drip’ was chosen to embrace the trending South African slang for highly fashionable [10:46].
III. The Fatal Flaw and Loss of Control
- Explosive Growth: Drip expanded rapidly to 25 stores and diversified into the Drip Group, with brands like Kitty’s Republic, Fish and Chips, and Domain [11:16].
- The Compliance Crisis: The business was intentionally built fast to be sold, but this speed led to cracks. The critical issue was a failure in compliance related to forex payments with overseas suppliers [13:08].
- The Reserve Bank Block: A minor paperwork issue led to the South African Reserve Bank blocking the company’s ability to make international payments, halting the flow of stock [13:36].
- The Financial Fallout: The inability to secure stock, especially during the crucial festive season, immediately put the company in the red. Lekau’s focus shifted from “steering the ship” to “closing a hole” [20:46].
- Unsolvable Problem: The Reserve Bank issue effectively blacklisted the company’s sole director (Lekau’s ID number), making it impossible to secure new funding or bring in other directors to restructure and scale [22:11].
IV. Liquidation, Hardship, and Legal Battles
- The End of the Group: All other ventures (including the long-term investment in Kitty’s Republic) were shut down in a last-ditch effort to save Drip, but the main company eventually faced forced liquidation by creditors [21:21].
- The Hardest Decision: The most painful moment was facing the 150-180 staff members via Zoom to announce the closure, noting he cried but was encouraged by their words [49:07].
- Personal Cost: The hyper-speed growth and subsequent stress led to the end of his marriage; he acknowledged being absent and letting the relationship wither [38:18].
- The Untold Legal Battle: Lekau revealed he went through a private Commission of Inquiry around the liquidation to detail the business’s assets, accounts, and intellectual property (IP), including all trademarks and designs [42:03].
- Introspection: Lekau identified key mistakes, particularly in compliance and internal systems, and spent time working in his family’s supermarket business to relearn the “core of retail” and discipline [46:02].
V. The Comeback: Taking Flight with ‘Kite’
- New Brand, New Pace: Lekau has launched a new brand, Kite, which is not an attempt to rebuild Drip, but a new intentional venture built at the right pace with “ease and calmness” [52:43].
- The Philosophy: The brand’s concept is inspired by the childhood activity of making and flying a kite—the process of putting in the work and hoping it catches wind [52:13].
- The Vision: The tagline is “Take Flight,” focused on encouraging consumers and building a community around shared stories of ambition and overcoming challenges [52:55].
- Self-Forgiveness: Lekau expressed pride in how far he has come, reflecting on his journey with a sound mind, stating he has forgiven himself and is wiser for the experience [53:53].
