Nadya Eka Lestari
TechInAfrica — ProfitShare Partners, Johannesburg-based fintech, has raised an R25-million capital line from Vumela Fund which is managed by the Edge Growth Ventures.
Founded in 2017 by Andrew Maren, ProfitShare Partners offers short-term capital solutions that encourage the growth of small- and medium-sized businesses.
According to Edge Ventures principal and chief deal maker, Sam Tennant statement on Thursday, 31 October, the firm believes it is going to see “exceptional growth” in the small businesses it supports through this investment.
Edge Growth Ventures said the deal links strongly to the Vumela mandate of supporting high-growth small businesses in the banking supply chain that have good economic and impact returns.
The Vumela Fund was established in 2009 by FNB Business Banking and Edge Growth to help alleviate poverty in South Africa by creating jobs through supporting the growth of small businesses.
The fund has R388-million under management from FirstRand and the Jobs Fund. Edge Growth Ventures said it has deployed R175-million to 15 early-stage businesses establishing more than 1000 permanent jobs so far.
Vumela Fund trustee, Mike Sage stated the fund has “every confidence” that ProfitShare Partners will deliver on the mandate of the fund.
“The results they have already shown will bring exceptional value to the objectives we wish to achieve – creating and supporting high growth in small businesses.
“The impact that we’ve seen is impressive and we look forward to accelerating this over the next two years,” said Sage.
Maren, who is also the CEO of ProfitShare Partners, said the fintech has unlocked “an insatiable market” for its offering.
Furthermore, he added that the commitment from the Vumela Fund will drive the company to reach more small businesses and make an even greater impact on the market.
“We’ve managed to grow our book value 400% in one year, highlighting the demand for this type of capital.
“Each successful deal raises the profile and profitability of our clients — ultimately, we want to grow small businesses to become financially sustainable and lose them to traditional financial institutions. That’s when we know we have truly helped our clients,” added Maren.
Source: ventureburn.com
