This SA FinTech Firm To Invests R600 Million In Funding For 6000 SMEs

Westvig said Retail Capital expects to provide funding of R600 million to more than 6 000 SMEs in 2019 and expect a multiplier effect that will create 3 500 jobs.

Karl Westvig (CEO of Retail Capital )
Karl Westvig (CEO of Retail Capital )

Crossfin Technology Holdings, a local FinTech group, has taken a significant minority interest in Retail Capital, a South African provider of alternative business funding to the SME sector.

The investment provides Crossfin with opportunities to augment and improve the delivery of FinTech products and services to the underserved merchant market.

Karl Westvig, CEO of Retail Capital, says the investment will support the company as it accelerates the development of its distribution channels.

The company has an already established partnership with Crossfin through which it provides merchants with instant automated access to short-term funding through their mPOS devices.

“We’ve seen very high take-up rates and great customer satisfaction among business owners accessing funding in real time at any time of day.”

Westvig said Retail Capital expects to provide funding of R600 million to more than 6 000 SMEs in 2019 and expect a multiplier effect that will create 3 500 jobs.

Crossfin currently processes more than $4 billion in point of sale transactions and $500 million in mobile transactions annually across more than 9 000 retail stores with over 110 000 points of sale lanes and 13 500 mobile (mPOS) merchants in 7 African countries, which is expanding.

“We believe in innovative companies that focus on solving specific everyday pain points that are not adequately covered by existing products in the market,” Anton Gaylard, chief operating officer and co-founder at Crossfin, said.

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SME word on eggshell putting on manu coins to represent the concept of sme financial support or investor or venture capital. soi7studio /

“Retail Capital has built a reputation and track record as an invaluable partner to local merchants that remain underserved by the traditional financial services system. A healthy partner ecosystem – including with some of Crossfin’s existing and prospective portfolio companies – also creates exciting opportunities to integrate a broad suite of financial products and services to support local merchants on multiple levels.”

Since 2011, Retail Capital has provided businesses with innovative, flexible and convenient alternatives to traditional business loans. The company has partnered with more than 5000 SME’s in providing funding of more than R1.25 billion to date.

Gaylard says that Crossfin’s strategy of establishing rails and then investing in complementary products that can be pushed down the rails has positioned it for a high-growth 2019.

“The investment into Retail Capital supports our larger vision for driving financial inclusion across Africa through the electronification of the continent’s payments ecosystem,” he said.

“We have worked with Karl and his team over the past four years and found great cultural alignment with his highly skilled team, as well as common ground in our belief in technology as an enabler of smart financial products that solve real problems in Africa.”


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