SOUTH African fintech start-up Yoco has announced that it has secured $16 million (R245.6m) in Series B funding at the same time that the country’s economy has gone into technical recession.
The fact that Yoco has secured funding during a difficult economic climate should be celebrated by the South African tech eco-system and is a vote of confidence in the local fintech eco-system.
According to the Global Entrepreneurship Monitor, entrepreneurs cite access to funding as one of their major challenges in starting and running a business.
When Yoco was in search of funding, it was international investors (Velocity Capital Private Equity and Quona Capital) that offered funding for its series A funding.
Yoco is one of the few South African start-ups that has managed to secure funding from international investors. The fintech company was inspired by the challenges experienced by small businesses in accessing payment systems (such as point of sale systems) from traditional banks.