Futuregrowth Asset Management has invested R150m into fintech and alternative funding provider Sourcefin. Sourcefin is set to deploy more than R1bn in funding for the financial year, ending February 2025, according to the fintech.
“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,” says Amrish Narrandes, head of private equity and Venture capital at Futuregrowth.
A crucial contributor to socioeconomic development and improved service delivery, the SMME sector enables previously disadvantaged and minority groups to enter the economy and accounts for over 30% of South Africa’s GDP.
“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 R150m will be deployed as a reinvestment into the backbone of our economy.”
Sourcefin says its strategic partnership with Futuregrowth will accelerate its ability to provide financing solutions, scale operations, enhance its technology platform, and expand its funding deployment nationwide.