Sourcefin Secures $8.2M Backing from Futuregrowth to Boost South African SMMEs

Sourcefin Secures $8.2 Million Investment to Empower South African SMMEs

South African fintech and alternative funding provider, Sourcefin, has successfully secured ZAR150 million (approximately US$8.2 million) in funding from Futuregrowth Asset Management. This landmark investment aims to strengthen Sourcefin’s mission of enabling financial access and providing specialized supply chain support to small and medium-sized enterprises (SMMEs).

Bridging the Financial Gap for SMMEs

Established in 2020, Sourcefin has emerged as a pivotal enabler for often-overlooked SMMEs in South Africa. By addressing critical gaps in financing, the company empowers small businesses to overcome working capital challenges and fulfill purchase orders from both public and private sectors. This innovative approach has positioned Sourcefin as a vital player in supporting the backbone of the South African economy.

Futuregrowth’s Strategic Investment

The ZAR150 million investment was provided through Futuregrowth’s High Growth Developmental Equity Fund (HGDEF). This fund is dedicated to supporting high-growth businesses and aligns with Futuregrowth’s strategy of investing in transformative enterprises. Notable companies previously backed by HGDEF include hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect.

Amrish Narrandes, Head of Private Equity and Venture Capital at Futuregrowth, highlighted the significance of this investment:
“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. Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfillment while maintaining strong financial performance made this a compelling investment opportunity.”

Scaling Sourcefin’s Impact

Joshua Kadish, Co-Founder, Director, and CEO of Sourcefin, emphasized the transformative potential of this partnership:
“There is no doubt about the massive impact that well-supported SMMEs can have on our country. With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”

Driving Economic Growth and Innovation

This strategic partnership between Sourcefin and Futuregrowth is poised to significantly enhance the financial landscape for SMMEs in South Africa. By leveraging Sourcefin’s innovative technology and expertise, the collaboration aims to foster economic growth, create jobs, and drive innovation within the sector.

With this funding, Sourcefin is set to expand its impact, reinforcing its role as a catalyst for change in South Africa’s SMME ecosystem.