Local and international investors are pumping billions into South Africa’s fintech scene, which include large investments in local start-ups over the last few weeks.
In July, South African fintech start-ups raised over R1.3 billion from notable investors, including Naspers, Vunani Capital, Old Mutual, and the Dragoneer Investment Group.
The largest investment came from the Dragoneer Investment Group, which invested R1.23 billion in Yoco.
Yoco offers payment tools to small businesses and micro-merchants in South Africa, including card machines and online payments.
Yoco CEO Katlego Maphai said they will use the money to accelerate product development and reach more merchants in South Africa.
Insurance technology start-up Pineapple closed its Series A funding in July, through which it raised R80 million.
Notable investors include Lireas Holdings, the ASISA ESD Fund, E4E, Vunani Capital, and the Old Mutual Enterprise and Supplier Development Fund.
On 21 July, insurance tech start-up Ctrl announced that Naspers had invested R34 million in the company.
Founded in 2017, Ctrl is a digital short-term insurance advice platform that connects consumers, brokers, and insurers.
Home services marketplace Kandua also announced a significant pre-series A funding round, which was led by Knife Capital and Allan Gray E-Squared Ventures.
The funding disclosed in the recent announcements is already on par with estimates by the Southern African Venture Capital and Private Equity Association (SAVCA) for 2020 and 2019.
SAVCA’s 2021 Venture Capital Industry Survey estimated that 122 South African start-ups received R1.39 billion from investors last year.
It was an improvement in 2019 when 69 early-stage fund managers invested R1.23 billion in South African start-ups.