Key Takeaways
- • South African fintech Yoco Technologies, backed by TPG, secured a $100m private credit facility from Victory Park Capital Advisors, according to Bloomberg.
- • The facility is Yoco's first direct borrowing arrangement and will fund working capital and cash advances for merchants on its payments platform.
- • Financing offered to merchants will range from ZAR2,000 to ZAR1.5m, covering inventory, expansion and equipment purchases.
- • Victory Park manages approximately $3.6bn in assets and has deployed more than $12bn across 260 investments since 2007.
- • The deal reflects growing use of private debt to fill gaps left by traditional bank lending in African fintech.
Summary
South African fintech company Yoco Technologies, which is backed by private equity firm TPG, has secured a $100m private credit facility from Victory Park Capital Advisors to expand financing for small businesses, according to a report by Bloomberg. The transaction is Yoco's first direct borrowing arrangement.
The facility will reportedly allow Yoco to provide working capital and cash advances to merchants using its payments platform. Financing will range from ZAR2,000 to ZAR1.5m, supporting businesses seeking to purchase inventory, expand operations or invest in equipment.
Victory Park manages approximately $3.6bn in assets and has deployed more than $12bn across 260 investments since 2007. Yoco has previously raised more than $150m in equity from investors including TPG and Dragoneer Investment Group, and has already distributed approximately ZAR6.5bn in merchant financing through third-party partners.
Founded in 2015, Yoco currently serves approximately 200,000 merchants and has processed more than $15bn in payments. According to the report, the credit facility reflects the growing role of private debt in financing African fintech companies as they seek to address gaps in traditional bank lending.
The facility will reportedly allow Yoco to provide working capital and cash advances to merchants using its payments platform. Financing will range from ZAR2,000 to ZAR1.5m, supporting businesses seeking to purchase inventory, expand operations or invest in equipment.
Victory Park manages approximately $3.6bn in assets and has deployed more than $12bn across 260 investments since 2007. Yoco has previously raised more than $150m in equity from investors including TPG and Dragoneer Investment Group, and has already distributed approximately ZAR6.5bn in merchant financing through third-party partners.
Founded in 2015, Yoco currently serves approximately 200,000 merchants and has processed more than $15bn in payments. According to the report, the credit facility reflects the growing role of private debt in financing African fintech companies as they seek to address gaps in traditional bank lending.
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