Yoco, a South African fintech startup, has raised $83 million Series C funding round to accelerate product development and reach more merchants in South Africa and beyond.
The new investment came from Dragoneer Investment Group. The fund has famously backed fintech giants like Chime, Klarna, Nubank, Mercado Libre and Square.
Other investors that participated include new investors Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures and TO Ventures; and existing investors Partech, Velocity Capital Fintech Ventures, Orange Ventures and Quona Capital. Current and former executives from global tech companies such as Coinbase, Revolut, Spotify and Gojek took part as well.
It is the largest single investment ever raised by a South African payments company and one of the largest on the continent. We welcome some of the world’s leading investors to Yoco and Africa for the first time. They are joining the movement to deliver financial tools for millions of small businesses across the continent.
Yoco helps small businesses in South Africa get paid in-store, online, and on the go. Yoco was named one of the top 250 most promising fintech companies by CB Insights for the last 3 years running. It raised 19 million dollars back in 2018 bringing the total investment it has raised so far to $107 million.
Currently, the digital payments solution is used by over 150 000 small and micro merchants across South Africa, processing a billion dollars on the platform.
Katlego Maphai, chief executive officer (CEO) of Yoco said: “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,” he said. “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.”
“We couldn’t be more excited to partner with the Yoco team,” Christian Jensen, co-head of private investments at Dragoneer, said in a statement.
“At Dragoneer, we look for great teams that are building durable businesses with wonderful economic models, and that is exactly what we’ve found at Yoco. Yoco is already beloved by customers, and the product roadmap that the company is investing behind will drive even more value for merchants. While there is tremendous room for continued growth domestically, the opportunity for Yoco goes well beyond South Africa.”