South Africa: Futuregrowth invests in SME funding fintech
Futuregrowth Asset Management has announced a R150 million (about $8.4 million) investment into Sourcefin.
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Futuregrowth Asset Management has announced a R150 million (about $8.4 million) investment into Sourcefin, a South African fintech and alternative funding provider dedicated to providing access to finance and specialist supply chain support for small and medium-sized enterprises (SMEs).
This milestone investment, made through Futuregrowth's High Growth Developmental Equity Fund (HGDEF), further cements the firm’s strategy in supporting high-growth businesses, including the likes of hearX, Yoco, Pineapple, Retail Capital, Ozow and Cash Connect.
Founded in 2020, Sourcefin addresses the gap in SME financing, empowering businesses to overcome working capital challenges and fulfil public and private sector purchase orders (binding agreements on which the SME is obliged to deliver).
Sourcefin is set to deploy more than R1 billion (about $56 million) in funding for the financial year ending February 2025, through its platform which integrates financing, supply chain management, and end-to-end project support.
“The SMME sector is vital for South Africa's economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders,” says Amrish Narrandes, head of private equity and venture capital at Futuregrowth.
“Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfilment while maintaining strong financial performance made this a compelling investment opportunity.”
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