South African Fintech Sourcefin Secures $8.2 Million Funding to Boost SMME Financing in South Africa

South African fintech and alternative funding provider Sourcefin has raised ZAR150 million (US$8.2 million) from Future growth Asset Management to enhance financial access and supply chain support for small and medium-sized enterprises (SMMEs).

The funding, sourced from Futuregrowth’s High Growth Developmental Equity Fund (HGDEF), underscores the fund’s mission to back innovative, high-growth businesses. Futuregrowth has previously invested in prominent companies like hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect, aligning with its strategy to address critical market gaps.

Sourcefin specializes in providing financial solutions and procurement expertise to SMMEs, particularly those fulfilling government and private-sector purchase orders. The company focuses on overcoming the working capital challenges faced by small businesses in executing tenders and contracts.

Joshua Kadish, Co-Founder and CEO of Sourcefin, stated that the ZAR150 million investment will significantly enhance the company’s ability to support SMMEs, which are crucial to South Africa’s economic growth. “This funding will enable us to empower more businesses that are integral to the country’s economic foundation,” Kadish remarked.

Futuregrowth’s Head of Private Equity and Venture Capital, Amrish Narrandes, praised Sourcefin’s innovative approach. By integrating technology-driven solutions with procurement and project management expertise, Sourcefin has developed a tailored financing model to meet the specific needs of SMMEs, particularly in fulfilling government-issued contracts.

This innovative capability, coupled with Sourcefin’s strong financial performance, made it an attractive investment for Futuregrowth.

With this funding, Sourcefin aims to deepen its impact on South Africa’s SMME sector, addressing persistent financing gaps, boosting productivity, and driving economic growth.

Source: Tech Build Africa