Sourcefin, a South African fintech and alternative funding provider founded in 2020, has raised ZAR150 million (US$8.2 million) from Futuregrowth Asset Management to enhance financial and supply chain support for small and medium-sized enterprises (SMMEs).
The funding, sourced from Futuregrowth’s High Growth Developmental Equity Fund (HGDEF), aligns with its mission to support high-growth businesses. Futuregrowth, known for investments in companies like Yoco, Ozow, and Retail Capital, focuses on innovative enterprises addressing market gaps.
Sourcefin specializes in helping SMMEs, particularly those fulfilling government and private-sector purchase orders, by providing financial and procurement solutions. The new funding will help bridge the persistent challenge of accessing working capital for tenders and contracts, a critical hurdle for many small businesses.
Co-founder and CEO of Sourcefin, Joshua Kadish, emphasized the significance of this investment, stating, “This ZAR150 million will be directed entirely toward empowering SMMEs, which are a vital component of South Africa’s economy. Strengthening these enterprises will drive economic growth.”
Futuregrowth’s Head of Private Equity and Venture Capital, Amrish Narrandes, praised Sourcefin’s technology-driven financing model tailored to the needs of SMMEs. “Sourcefin’s innovative approach and strong financial track record make it an excellent fit for our investment strategy,” he said.
With this funding, Sourcefin is set to make a greater impact in addressing financing gaps that hinder SMMEs, driving growth and boosting productivity in South Africa’s economy.
