• Sourcefin raises ZAR150 million to expand operations, improve technology, and increase its market footprint.
• The investment aims to address financial inclusion for SMMEs, a cornerstone of South Africa’s economy.
• Sourcefin’s growth could inspire fintech advancements across South Africa and similar markets worldwide.

Scaling Tech, Expanding Reach, and Impacting SMMEs

Sourcefin, a South African fintech specializing in financing solutions for small, medium, and micro-enterprises (SMMEs), has secured a ZAR150 million (approximately USD 8.3 million) investment from Futuregrowth Asset Management. This capital infusion is aimed at scaling operations, enhancing technology, and amplifying its impact on underserved SMME markets.

As traditional banks struggle to cater to SMMEs’ unique needs, Sourcefin offers innovative financing alternatives that streamline access to credit. With this approach, the company stands out against competitors like TymeBank, which recently acquired Retail Capital, and Capitec, a major player in the small business finance sector.

“The SMME sector is vital for South Africa’s economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders.”

Amrish Narrandes, Futuregrowth Head of Private Equity and Venture Capital

Futuregrowth’s involvement underscores Sourcefin’s credibility and growth potential, reflecting a robust alignment with South Africa’s broader economic goals. According to Sourcefin’s leadership, the funds will support technology upgrades, market expansion, and improved customer services.

Sourcefin Empowers Small Businesses in a Complex Economy

South Africa’s economy, heavily reliant on SMMEs, faces challenges such as high unemployment and limited financial inclusion. According to Futuregrowth, SMMEs contribute over 40% of South Africa’s GDP yet struggle to access adequate financing. Sourcefin bridges this gap with technology that simplifies application processes and offers competitive loan options.

“With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150m will be deployed as a reinvestment into the backbone of our economy.”

Joshua Kadish, Sourcefin Co-Founder, Director and CEO

The investment aligns with the South African government’s push for financial inclusivity and the digital transformation of SMME ecosystems. Sourcefin has already facilitated over 10,000 loans since its inception, with a significant portion targeting historically disadvantaged businesses.

Pioneering the Next Phase of Fintech Innovation

Sourcefin’s immediate plans include scaling its proprietary platform and expanding into underserved regions across South Africa. By focusing on data-driven insights, the company seeks to refine its risk assessment models, reducing barriers for SMMEs to secure loans.

This growth is expected to create job opportunities and bolster local economies, especially in rural and peri-urban areas. With ZAR150 million in funding, Sourcefin is better equipped to challenge market giants and inspire similar ventures across Africa and the MENA region.

The investment’s ripple effects could also fuel a cultural shift in how small businesses perceive and access financing. By prioritizing inclusivity and leveraging technology, Sourcefin is charting a path for sustainable economic growth, with potential scalability to international markets.