Franc, a South African financial app, has secured ZAR8 million (US $522,000) in a seed extension round and unveiled a B2B solution that allows partner organizations to quickly and easily deploy savings and investment products.
Franc was founded in 2017 by Sebastian Patel and Thomas Brennan, who were upset by the complexity and high barrier to entry of existing investment offers, as well as worried about the low rate of investment among South Africans.
In 2021, the firm grew 400%, and it has recently launched its B2B service, Franc Business. Using Franc’s technology and licensing, businesses will be able to provide high-quality investment products to their own consumers.
The news comes after a recent seed extension fundraising of ZAR8 million (US$522,000), which includes investment from 4DX Ventures, a pan-African venture capital firm. The financial infusion will help support the B2B project, which is aimed at companies who seek to increase customer loyalty and value proposition by providing a “plug and play” investment and savings solution.
“The advantage of Franc Business is its simplicity and low cost. As a B2B play, we provide a single application programming interface (API), which gives us the ability to integrate with client platforms quickly and easily,” said Patel.
“Franc Business clients can help their customers to start saving or investing immediately, boosting loyalty and value for the business, without the hassle of regulatory red tape and lengthy technical development.”
4DX Ventures managing partner Peter Orth commented on his firm’s choice to invest in Franc, saying that his firm was enthusiastic about increasing the possibility for everyone to save and invest since it is a fundamental component of being able to grow wealth over time.
“We think Franc has an excellent vision for how they will accomplish this in South Africa, and we’re excited to support them,” he said.
