South Africa-based Yoco has raised $16 million in a new round of funding in order to expand upon its payment management services for SMBs. Yoco’s tools help SMBs get paid and manage their businesses.
This round of funding was led by Silicon VC firm Partech. Other investors that participated in this round include Orange Digital Ventures, Dutch Development Bank FMO, and FutureGrowth. Existing investors Quona Capital and Velocity Capital also joined this round.
Yoco co-founder and CEO Katlego Maphai estimated that the company is tapping into a $20 billion cash payment industry. Yoco sells a point of sale card reader that can be connected to proprietary payment and performance software for a cost of only 1799 South African Rand (slightly more than $100), according to TechCrunch.
This makes it easier for cash-based businesses to accept credit cards. And the service also helps businesses track their top-selling products, inventory, and peak sales periods.
“This round represents a vote of confidence in technology ventures operating in this market, servicing the untapped potential of small businesses,” said Maphai in an interview with Forbes contributor Toby Shapshak. “Only 7% of South African small businesses accept card payments, despite South Africa having a card penetration of 75%.”
Maphai said that the funding will be used for expanding its small business merchant network along with investing in product development.
Currently, Yoco is processing $280 million in annualized payment volume. This is what is being generated by just a bit under 30,000 businesses.
Yoco was founded in 2013 by Katlego Maphai (chief executive officer), Bradley Wattrus (chief financial officer), Carl Wazen (chief business officer), and Lungisa Matshoba (chief technology officer). And the company has raised a total of $26 million thus far.
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