South African fintech and alternative funding provider Sourcefin has raised ZAR150 million (US$8.2 million) in funding from Futuregrowth Asset Management. Founded in 2020, Sourcefin focuses on providing financial support and specialist supply chain solutions for small and medium-sized enterprises (SMMEs), addressing a significant gap in SMME financing and enabling businesses to overcome working capital challenges.
The funding comes from Futuregrowth’s High Growth Developmental Equity Fund (HGDEF), which has a track record of investing in innovative, high-growth businesses such as hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect. This latest investment aligns with the fund’s mission to back transformative solutions that drive economic growth.
Joshua Kadish, Co-Founder and CEO of Sourcefin, expressed enthusiasm about the funding’s potential to amplify the company’s impact. “With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases. Our commitment is that all R150 million will be reinvested into the backbone of our economy,” said Kadish. He emphasized that empowering SMMEs is critical to strengthening South Africa’s economic foundation.
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Sourcefin’s innovative model combines technology-driven solutions with procurement and project management expertise. This approach uniquely positions the company to assist SMMEs in fulfilling public and private sector purchase orders, particularly government-issued tenders.
Amrish Narrandes, head of private equity and venture capital at Futuregrowth, highlighted Sourcefin’s role in bridging the financing gap for SMMEs. “The SMME sector is vital for South Africa’s economic growth, yet traditional financing solutions often fail to meet their unique needs. Sourcefin’s technology-first approach and proven ability to support tender fulfillment while maintaining strong financial performance made this a compelling investment opportunity,” Narrandes explained.
This funding will enable Sourcefin to expand its reach, drive growth and productivity in the SMME sector, and reinforce its commitment to creating impactful, sustainable economic opportunities in South Africa.
