South African fintech Yoco has secured a US$100 million credit facility from US-based Victory Park Capital. The Cape Town-based company provides payment terminals, online payment processing, and business management tools. The facility will fund loans and cash advances for small businesses.
Facility details
The facility marks Yoco's first direct entry into the debt market. It will support merchant loans and cash advances from ZAR 2,000 to ZAR 1.5 million. Yoco has already facilitated ZAR 6.5 billion in merchant financing through partners.
Company footprint
Yoco was founded in 2015 by Katlego Maphai, Carl Wazen, Bradley Wattrus, and Lungisa Matshoba. It serves 200,000 merchants across South Africa. The company has processed more than US$15 billion in payments.
How lending works
Yoco uses transaction histories and business performance data to tailor financing offers. This helps merchants access working capital without relying only on traditional credit checks. The debt facility will support lending without diluting existing shareholders.
Victory Park Capital manages about US$3.6 billion in assets. The firm provides flexible capital to fintech and small business lenders. Yoco plans to use the new facility to expand merchant financing operations.
Read more: bloomberg.com