Naspers has invested R40 million ($2.5 million) in financial advisory fintech firm LifeCheq, through its early-stage tech investment vehicle Naspers Foundry.
The investment is part of a total R53 million ($3.3 million) series A investment round led by Naspers Foundry, with the balance funded by existing investors.
In a statement, Naspers says the investment round will be focused on new technology and capabilities to significantly scale LifeCheq’s platform, accelerate its partner experience and grow its customer base.
Launched in 2018, LifeCheq’s artificial intelligence-powered platform equips financial advisers with the ability to improve client experience and drive efficiency, notes the statement.
It combines integrated workflows and an online dashboard to give its users a central place to manage their personal finances, enabling them to set and track their financial goals.
Since its launch, the fintech firm is said to have helped more than 45 000 users in SA gain access to financial advice and planning.
According to Naspers, LifeCheq plays a critical role in driving financial inclusion in SA by democratising access to financial advice – previously only accessible to high-income earners.
Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, comments: “We are passionate about supporting entrepreneurs that make a meaningful contribution to society. Through LifeCheq, holistic, personalised financial advice can be made accessible to previously underserved South Africans.
“LifeCheq is empowering people to take charge of their finances – improving their financial well-being and inclusion in the process. This investment supports our focus of backing purpose-driven technology businesses.”
Naspers Foundry is a R1.4 billion early-stage business funding vehicle dedicated to growing South Africa-focused technology companies.
The investment in LifeCheq marks Naspers Foundry’s fifth fintech investment in SA-focused technology companies and eleventh tech transaction since its launch in 2019.
Fabian Whate, head of Naspers Foundry, points out the LifeCheq investment builds on Naspers Foundry’s growing fintech portfolio, which includes Ctrl, Naked Insurance, Planet42 and Floatpays.
“The South African entrepreneurial environment continues to produce high-quality, needs-based businesses as evidenced by our investment in LifeCheq.
“We look forward to working with the LifeCheq CEO Abu Addae and his highly-experienced team as they strive to broaden access to financial advice through the use of technology. We are excited to support the company’s next phase of growth.”
Adds Addae: “Existing solutions for quality financial advice practically ignore more than two billion mass affluent clients globally, simply because they’re not wealthy enough. Our mission is to fix that. It is great to partner with Naspers Foundry. They have taken the time to understand our vision and the opportunity in our offering, and we are extremely excited about the journey ahead.”
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