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Sourcefin secures R150m investment to boost SMME financing

17 Dec 2024

Futuregrowth Asset Management has allocated R150m to Sourcefin, a South African fintech and alternative funding provider that supports small and medium-sized enterprises (SMMEs) with financial services and supply chain assistance.

Source: Pexels

Founded in 2020 and a 'disruptor' in the SMME lending space, Sourcefin is an enabler of the forgotten SMME and addresses the critical R300bn gap in SMME financing, empowering businesses to overcome working capital challenges and successfully fulfil public and private sector purchase orders (binding agreements on which the SMME is obliged to deliver).

Sourcefin is set to deploy more than R1bn in funding for the financial year, ending February 2025, through its innovative platform which integrates financing, supply chain management, and end-to-end project support.

“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,” says Amrish Narrandes, head of private equity and venture capital at Futuregrowth.

“There is no doubt about the massive impact that well-supported SMMEs can have on our country,” says Joshua Kadish, co-founder, director and CEO of Sourcefin.

“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.”