Yoco, a South African payments and software startup, has raised US$83 million in Series C funding to accelerate platform development and international expansion.
Yoco builds tools and services to help small businesses in accepting card payments in-store and online, accessing loans, and managing their day-to-day operations. In less than six years, the startup has become the preferred payments partner for over 150,000 South African small businesses, processing more than US$1 billion in card payments per year.
The startup’s most recent funding round was a US$16 million Series B in late 2018, and it has now secured a US$83 million Series C. Yoco will be able to accelerate the development of its financial ecosystem for small businesses and expand its market presence beyond South Africa as a result of the investment, which brings the startup’s total funds raised to date to US$107 million.
Yoco plans to expand into the larger African market as well as the Middle East, with the goal of reaching one million merchants within the next four years. It is currently testing its technologies in Mauritius, with plans to expand to another country by early next year.
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.
Existing Yoco investors Partech, Velocity Capital Fintech Ventures, Orange Ventures, and Quona Capital also participated in the funding round.
The funds will be used to invest in the company’s future growth, according to the company.
“We are excited to partner with such world-class investors who have joined our quest to break barriers and create access to financial services for millions of small businesses across the continent,” Katlego Maphai, CEO of Yoco, said in a statement.
“Looking ahead, this investment will unlock capacity for us to accelerate product development for our merchants and continue on our growth trajectory in South Africa and beyond.”
The company intends to expand into other African countries and the Middle East over the next two years. Yoco hopes to reach one million merchants in the next four years by expanding into new markets.
“This new capital injection translates into an acceleration of access for small businesses in our region and beyond, bringing our vision of open commerce forward,” Maphai added.