South African fintech company iKhokha has disbursed over $105 million (R2 billion) in working capital to its small and medium-sized enterprise (SME) customer base in partnership with Retail Capital, now a division of TymeBank. Fintech, known for its SME-focused financial services platform, facilitates both in-person and online payments for entrepreneurs.
iKhokha's platform not only enables businesses to accept various forms of payments but also provides access to working capital and affordable business management tools. These tools include daily sales analytics, sales target setting, and sales performance tracking, empowering SMEs to manage their businesses more effectively.
Read also: iKhokha, Mastercard partner to drive contactless payments in SA
Shareholding Changes and Expansion
After experiencing significant growth over the past five years, iKhokha has undergone fundamental shareholding changes. Shareholders recently decided to spin the business off from the Adumo group, a move that reflects iKhokha's evolution and future strategic direction.
iKhokha CEO and co-founder Matt Putman expressed pride in the company's accomplishment, stating, "To have injected $105 million (R2bn) worth of working capital into the small business sector in South Africa is a special achievement and milestone for us collectively." He emphasized the importance of iKhokha's sustainable funding model, which addresses the financing needs of SMEs that often struggle to access loans from traditional banks.
Supporting Economic Growth
Miguel Da Silva, managing executive of Retail Capital, highlighted the economic impact of iKhokha's achievement, noting that it not only fuels economic growth but also demonstrates the value of partnerships in supporting entrepreneurs facing funding challenges in a challenging economic environment.
Putman emphasized the vital role of the self-employed sector in stimulating the economy and reducing unemployment. He believes that by investing in SMEs and exposing them to the digital economy, iKhokha is contributing to the growth and resilience of South Africa's economy.
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Future Potential and Growth
Nic Smalle, MD of iKhokha shareholder Apis Partners, praised iKhokha for becoming a market leader in the South African SME payments space. He believes that the company is well-positioned for future growth and success as a standalone business.
Dean Sparrow, CEO of Crossfin Holdings, an investor in iKhokha since its inception, echoed this sentiment, stating, "Crossfin, Apis, and IFC continue to support the vision of Matt Putman and his team based on their impressive track record."
