To increase access to SME financing, SA fintech Sourcefin secured $8.2 M funding from Futuregrowth
Futuregrowth Asset Management has contributed ZAR150 million (US $8.2 million) to Sourcefin, a fintech and alternative funding provider based in South Africa that offers small and medium-sized businesses (SMMEs) access to financing and specialized supply chain support.
Established in 2020, Sourcefin helps businesses overcome working capital obstacles and successfully fulfill purchase orders from the public and private sectors by addressing the crucial gap in SMME financing and enabling the forgotten SMME.
Futuregrowth’s High Growth Developmental Equity Fund (HGDEF) provided its ZAR150 million (US $8.2 million), solidifying the company’s approach to assisting high-growth companies like hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect.
“There is no doubt about the massive impact that well-supported SMMEs can have on our country,” says Joshua Kadish, Co-Founder, Director and CEO of Sourcefin. “With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”
“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,” said 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.”