At Sourcefin, we believe in empowering South Africa’s small, medium, and micro enterprises (SMMEs) with access to the funding and resources they need to thrive. We are thrilled to share a transformative milestone in our journey: Futuregrowth Asset Management has invested R150 million into Sourcefin through their High Growth Developmental Equity Fund (HGDEF). This partnership is not just about financial backing; it’s about scaling our impact and enabling SMMEs to realise their full potential.
Sourcefin Closing the SMME Financing Gap
South Africa faces a critical R300 billion gap in SMME financing, a challenge we’ve been addressing since our founding in 2020. SMMEs are the backbone of the South African economy, contributing over 30% of the GDP and playing a crucial role in job creation and community upliftment. Yet, traditional financing options often overlook these businesses, particularly when it comes to fulfilling government-issued orders.
This is where Sourcefin comes in. Our innovative platform integrates financing, supply chain management, and project oversight to provide comprehensive support for SMMEs. Whether it’s purchase order funding, invoice discounting, or access to a network of over 2,000 pre-vetted suppliers, our solutions are tailored to meet the unique needs of small businesses.
Scaling Our Impact with Futuregrowth
Futuregrowth’s investment not only validates our approach but also accelerates our ability to make a difference. With this R150 million injection, we are on track to deploy over R1 billion in funding by the end of the financial year in February 2025. This capital will empower SMMEs to deliver critical projects across sectors like emergency housing, medical equipment, construction, and more.
In the words of our CEO:
"There is no doubt about the massive impact that well-supported SMMEs can have on our country. With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy."
Amrish Narrandes, Head of Private Equity & Venture Capital at Futuregrowth, echoes this sentiment:
“Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfilment while maintaining strong financial performance made this a compelling investment opportunity.”
Empowering South Africa’s Future
More than 90% of our clients represent minority demographics, including black female-owned and youth-owned businesses, as well as rural entrepreneurs. This isn’t just about financial support—it’s about empowering communities and driving socioeconomic development. With each project successfully delivered, lives are transformed, and South Africa’s economy is strengthened.
A Shared Vision for Developmental Impact
Futuregrowth’s 25-year track record in developmental investments makes them an ideal partner for Sourcefin. Their HGDEF fund has backed some of the country’s most innovative high-growth businesses, from Yoco to Cash Connect. Together, we’re aligned in our mission to drive real economic equity and impact. With government spending projected to exceed R7 trillion over the next three years, the opportunities for SMMEs are life-changing, and Sourcefin is uniquely positioned to help them seize these opportunities.
This investment marks the beginning of an exciting new chapter for Sourcefin. We are ready to scale our operations, enhance our technology platform, and expand our reach to support more SMMEs across the country. With Futuregrowth’s partnership, we are confident that we can continue to innovate, disrupt traditional funding models, and create lasting value for South Africa’s small businesses.
To learn more about our journey and how we’re transforming SMME funding, visit Sourcefin.
