Yoco raises $83M in Series C from Dragoneer Investment Group

SaaS News -South-African-payments-startup-Yoco-raises-$83M-Series-C-backed-by-Dragoneer(source: SaaS Industry)
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Yoco has raised $83M (R1.23 billion) in a Series C funding round led by Dragoneer Investment Group to accelerate product development. It aspires to move beyond South Africa and help one million merchants in the next four years using its services.

South Africa’s Yoco, which offers payment tools to small businesses and merchants, has announced a fundraise of $83 million (South African Rand of 1.23 billion) in a Series C round led by Dragoneer Investment Group.

Yoco said that this financing is the largest ever amount raised by a South Africa-based company in the payments space and the single largest investment raised by a platform focusing on small businesses in the Middle East and Africa. Yoco’s Series B funding was in 2018, where it bagged $16 million. With the close of Series C, the total funding raised by Yoco crossed $106 million, as per Crunchbase

Other and existing investors – e Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures, TO Ventures, several current and former executives from Coinbase, Revolut, Spotify and Gojek- joined the Series C round, Yoco said.

Yoco, launched in 2013, provides a go-to-platform for merchants to access offline and online payments. In an official blog post, Katlego Maphai, co-founder and CEO of Yoco, stated that many small businesses in Africa and the Middle East were still transacting in cash and did not benefit from inclusion in the formal economy. 

With the pandemic accelerating digitization, Mr. Maphai enunciated that Yoco would continue to support merchants through the digital transition phase and aspires to reach one million merchants in the next four years. Thanking the investors for the support, Mr. Maphai added,

Working so closely with small businesses during a global pandemic, and in particular through a challenging socio-economic environment in South Africa, we have a firsthand account of how agile these small businesses need to be in a rapidly changing world. Removing barriers and leveling the playing field by creating access to financial tools is a big part of answering these challenges. Yoco is at the forefront of solving what is critical for small businesses and enabling them to thrive.

Katlego Maphai, co-founder and CEO of Yoco

Yoco said that it would use the proceeds from the funding to accelerate product development, reach more merchants in South Africa and beyond, and further its mission of bringing open commerce forward.

Christian Jensen, co-head and partner at private investments at Dragoneer Investment Group, in a statement, expressed excitement at the investment in Yoco and added that Yoco fulfilled the criterion for Dragonner’s investments – having a great team and building durable businesses with wonderful economic models. 

Yoco is already beloved by customers, and the product roadmap that the company is investing behind will drive even more value for merchants. While there is tremendous room for continued growth domestically, the opportunity for Yoco goes well beyond South Africa

Christian Jensen, co-head and partner at private investments at Dragoneer Investment Group
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