Finch Technologies which works with and provides controllers and technology to some of the biggest names in virtual and augmented reality has made another undisclosed investment in FundingHub, South Africa’s leading business finance marketplace. This second investment makes the company FundingHub’s majority shareholder.
Michael Bowren, Finch Technologies CEO clarified the decision:
“We made a second investment into FundingHub due to its dramatic growth over the past 18 months. We are confident about the ongoing expansion of this business. We are particularly interested in investing in technology-driven businesses that help financial service providers originate sales, onboard new clients seamlessly, and enrich their database. It is through the seamless origination and onboarding that real value is offered to businesses and consumers.”
The FundingHub platform
FundingHub connects South African SMEs looking for capital to start or grow their businesses with 33 banks and alternative lenders. To qualify, SMEs must already be in business for six months with an annual turnover of R 350 000. Finch Technologies also owns 100% of SA’s largest financial comparison marketplace, Fincheck, where users can explore options to find the most appropriate finances for their needs.
Bowren explains that “Finch Technologies is rapidly evolving both our marketplaces, Fincheck and FundingHub to provide an end-to-end solution. This means that both platforms will allow South Africans to apply for financial and insurance products, upload the relevant documents and compare, in real-time, the offers that banks, lenders, and insurers have available. This is a significant advance in the South African market and a necessary move towards an open financial ecosystem.”
Launched in 2017, FundingHub allows small business owners to compare funding solutions from R10 000 to over R100-million, at no cost to them. The system then matches the business with the most suitable lender. This well-timed second investment rounds out Finch Technologies’ current fintech offerings; two marketplaces (Fincheck and FundingHub), a document collection and verification technology (Gathr) and a credit rehabilitation product that presents an individual’s credit report simply and for free (BetterScore).
Bowren concludes, “Since the start of Covid-19, FundingHub has seen a dramatic increase in requests for financing from SMEs. This is for two main reasons. The first is SME distress and their struggles to manage cash flow. The second has been the inability or reluctance to visit a physical bank branch. SME owners are therefore searching and comparing options online. Businesses and lenders have therefore been driven to accept a fully digital solution which encompasses the vision of Finch Technologies which is moving toward a full end-to-end marketplace, offering everything short of disbursing the final product.”
