South Africa’s payment and software platform, Yoco, has reportedly raised USD 83 million in Series C funding backed by Dragoneer Investment Group.
The round also saw participation from new investors like TO Ventures, 4DX Ventures, The Raba Partnership, HOF Capital, Breyer Capital, and current and former executives from global tech firms such as Gojek, Spotify, Revoult, and Coinbase. The startup plans to use the new funds to scale its online and offline offerings and reach new markets.
Chief Business Officer Carl Wazen mentioned they want to provide any form of payment their merchants require, and they did start with in-person payment space, emphasizing terminals. However, the pandemic necessitated businesses that relied on in-person trade to accept payments online, he added.
Yoco's Chief Executive Katlego Maphai stated earlier this year that the company intends to expand into other parts of digital payments. QR payments, mobile money, and electronic funds transfer (ETF) are among the services in the works.
It is worth noting that over 6 million small businesses in the region still deal in cash, presenting a huge opportunity for Yoco. The company stated that the number of cashless small firms surged by 300% from March to July 2020.
Yoco has helped SMEs (small and medium enterprises) to accept cards with its portable card machines. The firm currently provides payment services to over 150 small businesses in South Africa, managing over USD 1 billion in card payments each year. It has processed more than USD 2 billion in card payments in its existence of six years.
For the record, the startup has secured a total of USD 107 million, making it one of the most valuable firms on the continent. However, Wazen believes that Yoco has only touched the surface in South Africa, he is excited to see the company expand throughout Africa and the Middle East.
Yoco plans to reach a million of the 10 million SMEs in the MEA region that deal with cash in the coming four years.
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