Yoco, the Cape Town-based payments provider, has landed an undisclosed amount of capital for its Series A round, which was led by two overseas financial technology investors, namely Velocity Capital, a Dutch private equity investment firm and Quona Capital, a US-based venture firm with strong connections to microfinance specialist, Accion.
Yoco, which was founded in 2013, will use the fresh capital to support its expansion plans, which involve growing both its product offering and South African footprint as well as penetrating new markets in East and West Africa next year.
The company launched its point-of-sale card reader in 2015, since when it has sold more than 6,500 of the devices to small businesses, a large majority of which had been unable to accept card payments previously. Yoco reportedly processed R1 billion (approximately $77 million at current exchange rates) in sales last year and has a goal to have 100,000 devices in operation within the next 5 years. Carl Wazen, Yoco’s Chief Business Officer told Times Live that the potential market for the company’s products was much larger, estimating it to be up to 1 million SMEs.
Yoco had received investments from both angel investors and seed capital firms prior to this round. Yoco’s CEO, Katlego Maphai indicated to Times Live that the firm is aiming to bring additional institutional investors on board to fund its push into other parts of the continent in 2018.