ProfitShare Partners has secured a R25 million capital line from the Vumela Fund, which is managed by Edge Growth Ventures. Launched in 2018, Vumela’s third fund focuses on supporting high growth SMEs in the banking supply chain with good economic and impact returns – a key driver of ProfitShare Partners value proposition to the SME market.
ProfitShare Partners is fast-tracking SME performance and delivery through its profit-sharing business model. As a short-term capital partner to small business owners, the FinTech company also provides the professional expertise and guidance to help SMEs deliver optimally and avoid the common pitfalls that slows growth.
“We’re really excited to have secured the confidence of an established fund like Vumela to continue enabling the SME market through our short-term capital solutions. We have unlocked an insatiable market for our offering and the commitment from the Vumela Fund is indeed encouraging to reach more SMEs and create an even greater impact in the market,” says Andrew Maren, founder and CEO of ProfitShare Partners.
“We have every confidence that ProfitShare Partners will deliver on the mandate of the fund. The results they have already shown will bring exceptional value to the objectives we wish to achieve – creating and supporting high growth SMEs. The impact that we’ve seen is impressive and we look forward to accelerating this over the next two years,” says Mike Sage, Trustee of the Vumela Fund.
Through its partnership with Edge Growth, ProfitShare Partners is assisting in addressing the gap that exists in the SME environment. In line with the Vumela Fund’s goal of ensuring sustainability for SMEs to become key contributors to job creation in the economy, ProfitShare Partners is committed to offering immediate capital solutions to SMEs struggling with cashflow to deliver on their contracts and purchase orders in the supply chain of large corporates.
“We’ve managed to grow our book value 400% in one year, highlighting the demand for this type of capital. Each successful deal raises the profile and profitability of our SME clients – ultimately, we want to grow small businesses to become financially sustainable and lose them to traditional financial institutions. That’s when we know we have truly helped our SME’s,” added Maren.
ProfitShare Partners is a proud Partner of the NSBC.
About ProfitShare Partners ProfitShare Partners is a Fintech business that provides disruptive short-term capital solutions (from R250,000 – R5 million) and transactional support to SMEs who have no access to funding, no security, financials or track record but have a contract or purchase order with a reputable company or government department. The company responds to applications within 24 hours, generates a term sheet within 48 hours and pays out within 7 days for new clients – even quicker for existing clients. ProfitShare Partners does not charge interest. Instead, they share in the profit with the SME. This is a high impact growth tool for SMEs, which enables rapid growth without giving away equity.
About Edge Growth Ventures Edge Growth is a leading SME and Venture Fund Manager, specialising in developing small businesses and creating jobs and real transformation by connecting corporates and entrepreneurs, growing SMEs by addressing their key constraints: access to finance, markets and skills. The offering consists of three services areas, designed to achieve maximum IMPACT: ESD Strategy for corporates & building SMEs in their value chain; investing in and growing SMEs through fund management; and scaling business to full potential through accelerator programmes.
About Vumela Fund Vumela was established in 2009 by FNB Business Banking and Edge Growth to help alleviate poverty in South Africa by creating jobs through supporting the growth of SMEs. Vumela has R388M under management, from FirstRand and the Jobs Fund, and to date has deployed R175M to 15 early stage businesses, creating over 1000 permanent jobs, primarily for low to middle income individuals.