back Back

4 South African FinTechs helping SMEs bridge the funding gap

By Edlyn Cardoza

August 22, 2022

  • Capricorn Capital Group
  • Financial Sector Conduct Authority
  • Financial Services
Share

Fundrr, Lulalend, Merchant Capital, Uprise.Africa, SMEs, Fundraising, FinTech, Capricorn Capital Group, Working Capital, Financial Services, Financial Sector Conduct Authority, South AfricaThe COVID-19 crisis has had a devastating impact on SMEs in South Africa. SMEs face barriers when securing capital to grow their business, resulting in an SME funding gap. One of the biggest problems SMEs face is the lack of access to credit.

Speaking on Uplinq and Nosmay’s partnership, Ishmael Yamson, Chief Executive Officer at Nosmay, said, “Many businesses in Africa function without maintaining diligent financial records, or without establishing a relationship with a national bank. We often refer to this as the ‘informal economy’, but it’s more appropriate to call it the unbanked economy. Sadly, these businesses are often underserved by financial institutions.”

According to McKinsey, SMEs make up about 98.5% of all businesses in South Africa. SMEs are crucial to the economy in South Africa, and optimal support is required to ensure their recovery and growth into the next normal.

Being a ray of hope to SMEs, FinTech companies have been coming together to help the continent’s SMEs overcome the challenges imposed due to the pandemic. A rising number of FinTech startups fund small businesses in SA using apps and online services.

Below are 4 South African FinTechs helping SMEs bridge the funding gap:

Fundrr is a financial technology company that uses intelligent algorithms to holistically assess businesses and business owners. Therefore, it can provide quick and easy Biz Funding to assist SMEs in the SA region. With its Business Funding Solution, you can use your funds for whatever your business may need to soar!

Lulalend is a FinTech company with a belief in the power of small business, making a difference, building a better solution, and striving for excellence. They aim to empower businesses across South Africa with the funds they need to grow.

Merchant Capital was established in 2012 as a provider of alternate sources of working capital, explicitly designed for SMEs in South Africa. In 2013, the Capricorn Capital Group invested in Merchant Capital. Its investment in Merchant Capital adds great value to the team as the reference shareholder, bringing many years of success in financial services and lending. Merchant Capital was started to support businesses that don’t have access to traditional funding solutions.

Uprise.Africa is South Africa’s Equity Crowdfunding Platform. Its platform allows investors worldwide to invest capital into South African businesses in exchange for equity shares. Uprise.Africa is disrupting the country’s traditional funding landscape by providing an alternative method for businesses to raise capital in South Africa. Uprise.Africa is regulated and authorised by the Financial Sector Conduct Authority of South Africa.

ALSO READ: Treasury and Capital Markets Systems Report 2022

Previous Article

August 22, 2022

Finastra and FormFree partner to streamline electronic borrower verification for mortgage lenders

Read More
Next Article

August 23, 2022

Masa Finance launches testnet of Soulbound Identity in Web3

Read More






IBSi Daily News Analysis

cloud,

July 19, 2024

Capricorn Capital Group

SMEs leverage cloud to gain competitive edge, study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Plum, UK’s smart money app raises £16m Series B

Read More

July 19, 2024

Airwallex obtains AFSL for expansion into retail investment offering

Read More

July 18, 2024

DIFISOFT & Quantit develop AI-based financial solutions in Southeast Asia

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2024