Tabletop mountain country, South Africa, ranks among the top three locations with the most activity and highest investment figures on the continent, alongside Nigeria and Kenya. According to Fintechnews Africa, one-third of start-ups in Johannesburg come from the fintech sector, and over 90 per cent of the population can access the internet.
This article, as in previous ones, will highlight the first five in the fintech space of the country for the previous year.
1. Yoco: This seven-year-old technology company provides payment tools to micro-merchants and small businesses through its Yoco app, card machines and online payments. Last year, it secured $83 million in Series C funding, and this will boost the fintech’s core enablers – its product capabilities, platform and market presence.
2. Planet42: Next on the list is a car-subscription start-up once referred to as CarGet, and founded in 2017. Its model enables the company to cater to private individuals ignored by South African banks when they need vehicle financing. Planet42 raised $30 million in funding to drive its planned expansion in South Africa.
3. Finclusion Group: As its name suggests, this fintech is aggressively driving financial inclusion in its home country and Sub-Saharan Africa. It has existed since 2019 and uses AI-driven fintech solutions to provide financial services and credit products. With $20 million secured in a funding round, the group can scale their portfolio, and expand into the east and south African markets.
4. Adumo: Previously called Crossfin Transactional Solutions, Adumo maintains that it is not a bank but a payment solutions provider. It is South Africa’s largest independent payment processor trusted by retailers across the country. It raised $15 million in funding to expand access to electronic payment solutions, especially for underserved small and medium-sized businesses.
5. Naked Insurance: Rounding off this list is an insurtech which uses AI to create new processes and experiences for its customers. Founded in 2018, Naked Insurance is a digital insurance platform covering homes, cars, standalone items and content. It raised $11 million in a Series A round, and this investment would enable the company to further reinvent insurance.
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