In Africa, the low bancarisation rate, combined with the digitalization fever, offers a fertile ground for the development of fintech startups. 

Yoco is a South African fintech startup co-founded in 2013 by Katlego Maphai, Carl Wazen, Bradley Wattrus, and Lungisa Matshoba.  Through its platform, it allows entrepreneurs to accept card payments. In 2017, the startup launched an eponymous mobile app to serve more clients in the local market. 

The platform allows Yoco clients to collect card payments but, it also gives SMEs the possibility to get cash advances to develop their businesses, through Yoco Capital. With Yoco Capital, the South African startup aims to help SMEs that are unable to get loans from traditional institutions develop their operations with no worries about deadlines, interest rates, or even defaulting risks and their consequences.  

“We understand that accessing capital is one of the hardest challenges faced by small business owners. It's also one of the biggest reasons why small businesses remain small. We continue to offer solutions that leverage smart technology to help small businesses grow,” indicates Yoco co-founder Katlego Maphai. 

Yoco Capital is accessible to eligible Yoco merchants only. Within one day, applicants can receive the loans requested. The amounts granted can range from ZAR2,500 (US$160) to ZAR75,000 (US$4,800). 

Since its creation, the startup has completed several funding rounds. The latest is a Series C funding round completed in July 2021. During that round led by Dragoneer Investment Group, Yoco raised US$83 million “to accelerate product development.”

In 2021, the startup claimed it had 150,000 businesses in its portfolio with 500 new merchants adding to that portfolio daily. Currently, the startup plans to expand into new African markets. Indeed, 90% of SMEs operating on the continent are small businesses. Yoco’s offers will be highly valuable to African entrepreneurs. 

In 2017, Yoco was selected by CB Insights as one of the top 250 financial technology companies in the world.

Adoni Conrad Quenum