Times might be tough for the average South African business, but some of our tech start-ups are going from strength to strength on the global stage.
Stellenbosch-based Skynamo recently scored a whopping $30 million (around R430 million) investment from American software investor Five Elms Capital, and now two local fintech start-ups have also been given a huge confidence boost.
As part of a collaboration between US banking giant JP Morgan, UK Aid, and Catalyst Fund, the companies have been chosen “to develop businesses that aim to extend responsible financial services to underserved communities around the world”.
Business Day reports that the $15m (around R215m) commitment will provide each with a grant of up to $100 000 (around R1,4 million), and connect them to a network of potential investors to aid with raising funds:
The two SA fintech start-ups that have been selected to participate in the incubator are Meerkat, a debt counselling and savings product company launched to help consumers gradually reduce their reliance on debt and improve their overall financial health, and Spoon, an online stokvel management system that aims to bring more transparency and security to the traditional practice of stokvels.
Those two fintech start-ups, along with the others chosen, will also receive technical assistance during the six-month incubation programme.
Given how bad South Africans are with handling credit cards and the ensuing debt, a service like Meerkat is welcome.
In terms of Spoon, a start-up related to stokvel payments, it’s good to have a level head in the mix, when you consider all of the stokvel scams that have done the rounds in recent times.
Let’s hope both go from strength to strength, and the networking possibilities pay off in the long run.
[source:businessday]
