South African payments and software platform, Yoco, has secured $83 million in Series C funding amid a surge in demand for digital payments amongst African small businesses.
Among the company’s new investors are Dragoneer Investment Group, which is making its Africa investment debut, after having previously backed fintech giants like Chime, Nubank, Mercado Libre, Square and Klarna. Also joining the round are Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures, TO Ventures and several current and former executives from global tech leaders such as Coinbase, Revolut, Spotify and Gojek.
Yoco currently proves payments services to over 150.000 small businesses across South Africa, processing more than US$1 billion in card payments per year.
The new funds will be used to extend its services across Africa and the Middle East region over the next two years, with the goal of reaching at least a million merchants within the next four years.
To support the company’s growth plans, Yoco aims to increase its team by 200 people within the coming year.
Carl Wazen, Yoco’s chief business officer, comments: “There are over six million small businesses in South Africa and well over 100 million across the Middle East and Africa that still transact only in cash. Recent consumer behaviour shows a shift away from cash and businesses have to rapidly adapt to this change. This presents a huge opportunity and it is our mission to support that transition.”