South African fintech, SourceFin, has secured $8.2 million in funding from Futuregrowth Asset Management, an investment firm based in Cape Town, South Africa.
With the investment, SourceFin says it is on track to deploy over R1 billion ($54.6 million) in funding by the end of the financial year in February 2025. This capital will empower small, medium, and micro enterprises (SMMEs) to deliver critical projects across sectors like emergency housing, medical equipment, construction, and more.
“There is no doubt about the massive impact that well-supported SMMEs can have on our country.
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 re-investment into the backbone of our economy,” said Joshua Kadish, SourceFin’s Co-Founder, Director and CEO.
According to SourceFin, South Africa faces a critical R300 billion ($16.3 billion) gap in small, medium, and micro enterprises (SMMEs) financing, a challenge that motivated its establishment in 2020.
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The company developed a platform that integrates financing, supply chain management, and project oversight to provide comprehensive support for SMMEs.
In addition to financing options, services offered on the platform include purchase order funding, invoice discounting, or access to a network of over 2,000 pre-vetted suppliers.
“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,” said Amrish Narrandes, Futuregrowth’s Head of Private Equity & Venture Capital.
SourceFin joins several high-growth businesses such as:
- HearX
- Yoco
- Pineapple
- Retail Capital
- Ozow, and
- Cash Connect
that have received investments through Futuregrowth’s High Growth Developmental Equity Fund (HGDEF).
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