South African payments platform Yoco has announced that its Series C round of funding has raised $83 million — or R1.2 billion — for the company.
This brings the total funds raised by the company to date to $107 million.
Yoco attributes the success to a surge in demand for digital payment solutions from African SMEs. The company, which offers payment technology and software solutions, has reached over 150 000 small businesses in South Africa since launching its solution six years ago.
Yoco’s point-of-sales technology has enabled previously cash-only businesses to accept card payments from customers. These businesses make up the majority of Yoco’s customers.
In the latest round of funding, investors included Dragoneer Investment Group, Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures, TO Ventures, and Futuregrowth.
Yoco looks to the future after successful funding round
The company says it will use the funding to invest in its continued growth.
“We are excited to partner with such world-class investors who have joined our quest to break barriers and create access to financial services for millions of small businesses across the continent,” Katlego Maphai, CEO of Yoco, said in a statement.
“Looking ahead, this investment will unlock capacity for us to accelerate product development for our merchants and continue on our growth trajectory in South Africa and beyond.”
Over the next two years, the company plans to expand into other African countries and the Middle East.
Through expanding into other regions, Yoco hopes to increase its reach one million merchants in the next four years.
“This new capital injection translates into an acceleration of access for small businesses in our region and beyond, bringing our vision of open commerce forward,” Maphai added.