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Yoco, A Fintech Startup Based In South Africa, Has Raised $83 Million In A Series C Funding Round

Yoco, a fintech startup based in South Africa, has raised $83 million in a Series C funding round. 

Yoco, a fintech startup based in South Africa, has raised $83 million in a Series C funding round

Yoco, a South African payment startup, has raised $83 million in Series C funding to expand its platform and reach new markets.

In 2018, the startup raised $16 million in a Series B funding round. This newly secured funding brings the company's total funding to $107 million. This funding will enable the company to expand beyond South Africa's borders and accelerate the development of its financial ecosystem for small businesses.

The funding is unsurprising given Yoco's current status as one of the most valuable startups on the African continent. This is the largest investment in South Africa, trailing only Flutterwave and Chipper cash.

Yoco's mission is to develop tools and services for small businesses, which are the backbone of most economies, accounting for 90% of existing businesses globally and providing over 50% of employment.

Since its inception in 2013, the South African fintech has been proactive in assisting small businesses in obtaining loans, managing their daily operations, and providing services that enable SMEs to accept card payments online or in-store. This has established it as the preferred payment partner for over 150,000 businesses, and it continues to grow at a rate of over 500 merchants per day.

The funding round was led by a new investor, Dragoneer Investment Group, which is entering the African investment market for the first time. Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures, and TO Ventures, as well as current and former executives from global digital companies such as Coinbase, Revolut, Spotify, and Gojek, participated in the round.

Christian Jensen, co-head of private investments at Dragoneer, expressed his company's excitement about partnering with Yoco in a statement.

“At Dragoneer, we seek out exceptional teams that are building long-term businesses with compelling economic models, which is precisely what we discovered at Yoco. Yoco is already well-liked by customers, and the company's product roadmap will add even more value for merchants. While there is significant room for continued growth on a domestic level, Yoco's opportunity extends well beyond South Africa.”

Katlego Maphai, Yoco's chief executive officer (CEO), added that the funding demonstrates the company's enormous potential, as he believes Yoco has only scratched the surface in South Africa but intends to expand into the larger African market as well as the Middle East.

Moving Forward

Yoco expects to reach a million SMEs in the next four years, with over 100 million SMEs in both regions transacting in cash. To accomplish these goals, it intends to expand its team by 200 people who will work remotely and in their Cape Town and Amsterdam offices over the next year.

The startup is already on the hunt for top talent to join its team. Among them are Monzo's former vice president of product, Paypal's former director of product marketing, and Uber's former head of communications, Juan Fuentes. Additionally, the company's new chairman is the former managing director of fintech unicorn Pagseguro.

Maphai believes that Yoco's approach to small businesses, combined with its depth of expertise and now the backing of some of the world's most prominent investors, positions the digital payments platform for significant and long-term growth.

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