Billions flowing into South Africa’s tech scene

While many segments of South Africa’s financial system have been struggling to maintain heads above water amid the Covid-19 pandemic, one has been flourishing — tech.

Across the world, expertise companies have typically benefitted from the disruption that got here from the disaster, with their revolutionary options providing options to the methods of life that have been not attainable as a result of strict curbs on motion and enterprise exercise.

Zoom’s shares boomed as a result of it provided a reliable and free video-conferencing device that appealed to companies and residential customers.

Adoption of Microsoft’s Teams distant working software program surged from 20 million every day energetic customers in November 2019 to 75 million in April 2020. It then climbed to 145 million a yr later.

Ecommerce websites like Amazon and Takealot additionally skilled large development as extra individuals most popular or have been required to buy on-line.

These adjustments have proven the potential of technological innovation in guaranteeing sustainable companies and led to traders pouring billions extra into the tech.

In South Africa, one explicit space has obtained a lot of the consideration — monetary expertise (fintech), together with cryptocurrency.

Fintech companies like iKhoka and Yoco are making it extra reasonably priced for casual and small-scale merchants to supply their clients the power to pay with playing cards.

Cryptocurrency platforms comparable to VALR and Luno make it simpler for the typical South African to purchase and commerce digital belongings.

Here are a number of South African tech firms which have amassed thousands and thousands and even billions in funding for the reason that begin of 2021.

FlexClub — R74 million

Car subscription market FlexClub obtained $5 million (R74 million) as part of a seed extension spherical that introduced its complete funding to round $6.2 million (R92 million) since its founding in 2019.

The brainchild of Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzanne, FlexClub is a web-based market that gives clients with versatile entry to long-term automobile leases.

It has specifically tailor-made an providing towards ride-hailing drivers that can’t afford or don’t qualify for automobile financing. It even has a devoted part for Uber drivers on its web site.

iKhokha — R1.5 billion for 37% of Crossfin

Patrice Motsepe’s African Rainbow Capital lately spent R1.5 billion to purchase a 37.33% stake within the Crossfin Technology Group.

Crossfin will use the cash to proceed rising its portfolio of companies, together with iKhokha, a bank-agnostic funds firm first launched on the finish of 2014.

Since then, it has grown its footprint to over 35,000 retailers, supporting the expansion of SMEs with low-cost cellular point-of-sale units.

Mobiz — R59 million

Mobiz integrates hyper-personalisation into cellular advertising and marketing with a code-free device that permits entrepreneurs, enterprises, and small to medium companies to create and ship SMS campaigns to their clients.

Founder and CEO Greg Chen established the corporate in 2014, constructing on his 15 years of expertise within the cellular business.

In November 2021, the startup introduced it had raised pre-Series A spherical funding of $4 million (R59 million) from HAVAÍC, Futuregrowth, Launch Africa, Allan Gray E-Squared Ventures, CapaciTech and Endeavor’s Harvest Fund.

It will use a part of the funding to make use of extra employees, whereas the corporate can be planning to broaden into the US.

Naked Insurance — R160 million

Disruptive app-based South African insurer Naked raised R160 million in a funding spherical led by Naspers.

The expertise large invested R120 million in Naked, with the agency’s current traders, Yellowwoods and Hollard, additionally collaborating.

Naked affords customers the power to take out short-term insurance coverage cowl on their residence, automobile, or particular person possessions through an app or browser.

The app makes use of a set of questions posed by a chatbot and combines the solutions with synthetic intelligence to calculate a premium in lower than two minutes.


Specialised warehousing and distribution administration firm Parcelninja offloaded a 60% share of its enterprise to JSE-listed logistics large Imperial in February 2021.

Parcelninja affords a wise warehouse and monitoring companies for fulfilling orders made in small on-line outlets. It supplies real-time reporting on stock because it strikes from arrival on the warehouse to supply on the buyer’s door.

The firm picks up and packs over 18,000 gadgets for about 3,000 orders per day.

TymeBank — R1.03 billion 

TymeBank’s worldwide arm Tyme raised an astounding $70 million (R1.03 billion) from Tencent and CDC in its newest spherical of funding.

Combined with the earlier spherical, Tyme has amassed $180 million (R2.66 billion), which can go in direction of rising TymeBank in South Africa and funding GOTyme within the Philippines.

As lately identified within the Solidarity Research Institute’s 2022 Bank Charges report, TymeBank affords the most affordable banking account in South Africa.

One of the financial institution’s distinctive companies is the power to print a card with initials from one among its kiosks, positioned at varied Pick n Pay retailers throughout the nation.

VALR — R738 million 

The cryptocurrency platform is barely three years outdated however is already value an estimated R3.7 billion.

Recently, it raised $50 million (R738 million) in a funding spherical for an enlargement throughout new markets in Africa and India.

The funding got here from Alameda Research, Cadenza, CMT Digital, Coinbase Ventures, Distributed Global, GSR, Third Prime and Avon Ventures, and current traders Bittrex and 4Di Capital, amongst others.

Partner at Pantera Capital, Paul Veradittakit, who spearheaded the funding drive, believes Africa has a vivid future for the adoption of cryptocurrencies for each asset diversification and funds.

“VALR brings an amazing product and service to onboard both retail customers and institutions,” he mentioned.

Ozow — R709 million

Payments gateway firm Ozow lately introduced it had secured Series B funding of $48 million (R709 million).

Led by Tencent, the funding spherical additionally included Endeavor Catalyst and Endeavor Harvest Fund. Notably, Endeavor Catalyst’s funding committee approval was chaired by Greylock co-founder and former government chairman of LinkedIn, Reid Hoffman.

The firm mentioned it was processing over $100 million in transaction volumes month-to-month throughout hundreds of retailers, whereas customers grew by over 120,000 per 30 days.

It is utilizing its newest funding to develop new merchandise and plans to broaden into the remainder of the continent.

Ozow affords Instant EFT funds through Scan to Pay QR codes at factors of sale and on-line outlets.

Teraco — R28.12 billion 

At the beginning of 2022, Digital Realty Trust confirmed it might purchase a 55% stake in South Africa’s largest information centre firm Teraco, placing its complete valuation at $3.5 billion (R51.67 billion).

Teraco has seven information centres throughout three metros in South Africa, providing a complete area of 48,000m2 and energy capability of 75MW.

It plans to broaden its amenities with an extra 93MW of capability adjoining to its Johannesburg and Cape Town campuses, whereas one other undertaking will ship an extra 19MW.

Stitch — R398 million 

The API fintech has raised a complete of $27 million (R398 million) in varied funding rounds since February 2021.

Stitch’s API permits fintechs, ecommerce gamers, marketplaces, and cost aggregators to combine bank-to-bank funds inside a couple of days.

The main benefit is that companies pay 50% decrease interchange and transition charges.

The startup expanded its providing to Nigeria in direction of the tip of 2021.

Yoco — R1.2 billion 

Affordable card machine and on-line funds supplier Yoco introduced it raised $83 million (R1.2 billion) in funding in July 2021, the biggest ever for a funds firm in South Africa.

Yoco affords the same service as iKhokha, with low-cost cellular cost units accepting contactless funds.

Its least expensive product is the Yoco Go, which may take contactless funds and prices as little as R199.

Yuppiechef — R500 million

Mr Price Group introduced it deliberate to purchase 100% of kitchen and homeware-focused ecommerce retailer Yuppiechef in March 2021. The Competition Commission accredited the deal in July 2021.

The acquisition was valued at round R500 million, making it one of many biggest-ever ecommerce offers in South Africa.

Yuppiechef was began in Cape Town in 2006 by Andrew Smith and Shane Dryden. It was initially run from Smith’s residence.


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