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Four local fintech start-ups bag R2m in funding

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 May 2021
The top four start-ups of the AlphaCode Incubate programme.
The top four start-ups of the AlphaCode Incubate programme.

Four fintech start-ups – AgriCool, Bento, Imfuyo Technologies and MatchKit.co – have been awarded a total of R2 million in funding by AlphaCode and move onto the next phase of the AlphaCode Incubate programme.

AlphaCode is an incubation, acceleration and investment vehicle for early-stage financial services businesses, powered by Rand Merchant Investment (RMI) and Royal Bafokeng Holdings.

The Alphacode Incubate programme awards entrepreneurial packages to SA’s most promising financial services start-ups. It has disbursed R32 million in funding to 31 black-owned financial services businesses over the past five years.

According to Alphacode, almost 200 fintech businesses initially applied for its incubation programme. Ten were selected for the initial three-month programme that provided funding, guidance from performance coaches and a panel of advisory experts, access to AlphaCode’s co-working space, and opportunities to apply for further early-stage investment.

After sweating it out at a virtual demo day last week, the four fintech start-ups were selected from the group of 10 to be part of the second phase of the AlphaCode Incubate programme.

The next phase of the initiative will see the four start-ups be part of an extended six-month programme, with each receiving funding of R500 000 and tailored business support.

“Despite a tumultuous year, a number of entrepreneurs saw how they could fill a gap in the market for financial services and related industries,” says Andile Maseko, head of ecosystem development at AlphaCode. “Those selected in the top four earned the opportunity for further funding and mentorship. The first part of the intensive programme focused on entrepreneurship and refining business models. The second phase will focus on revenue generation.”

In addition, these start-ups will be able to apply for seed capital from AlphaCode’s fund that invests in early-stage start-ups.

The panel of judges included Willem Roos, former CEO of Rain and former founder of OUTsurance; Raymond Ndlovu, CEO of Community Investment Ventures Holdings; Dominique Collett, head of AlphaCode and senior investment executive at RMI; Danie Matthee, CEO of OUTsurance; and Mcebo Ntombela, investment manager at Royal Bafokeng Holdings.

“The panel had a good mix of entrepreneurs and corporate execs who understand the digital landscape,” notes Maseko.

One of the judges, Ndlovu, adds: “The mix of businesses presenting this year was fascinating − a bit of everything from crypto to sports to stokvels and car repairs. The presentations were of a high standard, taking into account the fact that we were all online. Look forward to the growth of all these promising businesses − whether they were selected for further incubation or not.”

Collett states: “We have been very impressed with the level of drive of these 10 start-ups who applied what they have learned on the AlphaCode Incubate programme as they focused on increased traction. The standard of these ideas gets better every year. It’s been a very intense time for the participants and we look forward to growing the four businesses.”

The selected start-ups are:

  • AgriCool is an e-marketplace that links smallholding farmers and buyers to a fair and reliable market. Founded by Zamokuhle Thwala, it offers farmers access to finance, reliable information on improving their production, and works with both formal and informal markets. Street vendors, retailers and the hospitality industry can get fresh produce delivered to them.
  • Bento is an out-of-the-box employee perks and benefits platform. It aims to give employers a simple and cost-effective solution to offer employee benefits without the cost and administrative burden. It was co-founded by Claudia Snyman, Dennis Williams, Bryn Divey and Ross Horak.
  • Imfuyo Technologies is developing a smart farming solution to give livestock farmers better oversight of their operations at viable cost points. The initial offering will consist of a smart tracker that will collect critical data about cattle location and behaviour. The data will be analysed to enable farmers to optimise farming activities. The platform will also serve as a de facto cattle deeds office, providing better traceability across the beef production value chain. The founder of Imfuyo Technologies is Allasandro Da Gama.
  • MatchKit.co is a platform that aims to help athletes make money, regardless of the status of sporting events. It integrates into existing social media channels and stats to showcase the value of an athlete’s digital audience to potential sponsors. It also offers a plug-and-play e-commerce store where fans can purchase everything from bespoke, branded merchandise to personalised video and audio shout-outs. MatchKit.co also plans to add insurtech and transactional or virtual card capabilities to its offering. The founders are Mike Sharman, Shaka Sisulu, Bryan Habana and Ben Karpinski.

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