Yoco will use the money to expand its network, invest in product development and attract talent.
South African FinTech start-up company Yoco held a private funding round with investors from Partech, Orange Digital Ventures, the Dutch Development Bank and South Africa’s FutureGrowth.
The company builds tools and services to help SMEs get paid and manage their businesses.
Co-founder and chief business officer, Carl Wazen, told Reuters:
“There is investor confidence and appetite for new business models and untapped segments in South Africa.”
This despite general foreign investment concerns about the political situation in South Africa and the recent announcement that the country has fallen into recession.
The private funding round raised $16 million (R242 million), which co-founder and chief executive Katlego Maphai says will be put towards expanding the company’s network of 27,000 small business merchants, investing in product development and attracting talent.
In a previous funding round, Yoco raised $3 million.