Cape Town-based Fintech startup Finch Technologies has made a large investment to become the majority stakeholder in South Africa’s premier business financing marketplace, FundingHub. This investment round follows an initial investment in FundingHub in 2019.
FundingHub connects South African SMEs with 33 banks and other lenders that can help them expand their company. SMEs that have applied for finance on FundingHub has been in operation for at least six months and generate a minimum of $25k in yearly revenue as they are matched with the most suitable lender.
Finch Technologies is South Africa’s leading financial comparison marketplace, the startup assists consumers and companies in finding the best financial solutions for their requirements. The startup also provides universally compatible controlling solutions for consumers, enterprises, and partners with some of the biggest names in technology.
Michael Bowren speaking on the startup said that Finch Technology will partner with FundingHub to ensure South Africans access financial and insurance services with ease.
“Finch Technologies is rapidly evolving both our marketplaces, Fincheck and FundingHub to provide an end-to-end solution. This means that both platforms will allow South Africans to apply for financial and insurance products, upload the relevant documents and compare, in real-time, the offers that banks, lenders, and insurers have available. This is a significant advance in the South African market and a necessary move towards an open financial ecosystem.
“Since the start of Covid-19, FundingHub has seen a dramatic increase in requests for financing from SMEs,” he adds. “This is for two main reasons. The first is SME distress and their struggles to manage cash flow. The second has been the inability or reluctance to visit a physical bank branch. SME owners are therefore searching and comparing options online.
“Businesses and lenders have therefore been driven to accept a fully digital solution which encompasses the vision of Finch Technologies which is moving toward a full end-to-end marketplace, offering everything short of disbursing the final product,” said Bowren.