from DION HENRICK in Cape Town
CAPE TOWN, (CAJ News) – FINCH Technologies, a Cape-based finance technology firm, has made a further significant investment to become the majority shareholder in South Africa’s leading business finance marketplace, FundingHub.
This follows a previous investment in 2019.
Figures were not disclosed.
“We made a second investment into FundingHub, due to its dramatic growth over the past 18 months,” said Michael Bowren, Finch Technologies Chief Executive Officer.
“We are confident about the ongoing expansion of this business. We are particularly interested in investing in technology-driven businesses that help financial service providers originate sales, onboard new clients in a seamless manner and enrich their own database. It is through the seamless origination and onboarding that real value is offered to businesses and consumers.”
FundingHub offers 33 banks and alternative lenders able to meet the needs of South African SMEs looking for finance to grow their businesses.
The business, started four years ago, allows SMS to easily compare funding solutions at no charge, from R10 000 (US$700) up to loans of over R100 million.
SMEs that apply for funding on FundingHub have been in business for at least six months with R350 000 annual turnover.
Since the start of COVID-19, FundingHub has seen a dramatic increase in requests for financing from SMEs.
“This is for two main reasons. The first is SME distress and their struggles to managecash flow. The second has been the inability or reluctance to visit a physical bank branch,” Bowen explained.
Finch Technologies wholly owns South Africa’s largest financial comparison marketplace, Fincheck.
– CAJ News