AlphaCode, the incubator, accelerator and investment vehicle has dispatched R23 million in loans to three fintech startups.
The startups in question are Zande Africa, Bright on Capital and Livestock Wealth.
Zande Africa provides trade and merchant finance to spaza shops enabling owners to purchase stock. The firm has 71 staff and R17 million in turnover.
Bright on Capital provides peer-to-peer lending services for small suppliers that exhibit sustainable growth prospects.
Livestock Wealth is, as the name suggests, a way to invest in livestock – particularly cows. The startup has 2 000 cows on its books valued at over R40 million.
“We have granted Zande and Bright On, with whom we’ve been associated for over four years, around R10 million in supplier development loans each and Livestock Wealth has been granted R2 million. Businesses like these don’t always get the funding they require to grow from commercial funders but as part of our commitment to partner and grow financial services startups, we’ve leveraged our supplier development spending to support them,” says head of AlphaCode Dominique Collett.
This is not the first time these firms have dealt with AlphaCode, all of them have received funding from the organisation in the past.
“In addition to this loan, AlphaCode has provided significant support to Bright On Capital over the past three years. In 2016 we were provided a grant of R500 000. At that stage, the grant was a critical source of seed capital which enabled us to expand our technology and provided us the necessary financial support to further develop the business. In 2017 AlphaCode provided us access to its office space in Sandton, where we could house our growing team,” says Bright on Capital founder Tsepo Headbush.
Chief executive officier at Livestock Wealth, Ntuthuko Shezi (pictured above) says the loan will be used to build the startup’s team adding that previous assistance from AlphaCode helped build the firm’s scope and revenue.
“We have grown to over a thousand customers. Our platform has grown to become a dependable supplier to large off-takers such as Woolworths. We have also grown beyond cows into a platform that connects farmers with investors where the investor owns real, high value, agricultural assets. These assets grow in the farmer’s care and earn profits when the products are sold at maturity,” said Shezi.