Littlefish, an innovative fintech startup based in South Africa, has successfully completed its seed funding round, spearheaded by TLcom Capital with Flourish Ventures participating as a co-investor. This funding round marks TLcom Capital’s inaugural investment in South Africa, signaling the firm’s strategic expansion into the southern African market after primarily focusing on East and West Africa.
The injection of funds is set to bolster Littlefish’s mission to enhance the relationship between banks and Africa’s small and medium-sized enterprises (SMEs). By leveraging the expanding capabilities of fintech, Littlefish aims to empower banks to more effectively cater to the needs of SMEs in South Africa.
For TLcom Capital, investing in Littlefish represents a calculated step into South Africa’s burgeoning fintech sector, which has been drawing increasing interest from international investors. This move aligns with TLcom’s wider strategy to diversify its investment footprint across pivotal African markets.
In a significant development in April 2024, TLcom Capital announced the successful final close of its TIDE Africa Fund II, amassing $154 million dedicated to supporting seed and Series A stage startups across the continent. With a portfolio exceeding $300 million in managed assets, TLcom has backed over 15 prominent startups across Nigeria, Kenya, and Egypt, including notable names like Andela, Twiga Foods, and Kobo360.
Founded in 2021 by Brandon Roberts and Miod Davith Kahwa, Littlefish is poised to address the financial service needs of over 80 million SMEs throughout Africa. The startup offers a comprehensive digital platform that facilitates a more efficient and customer-centric approach for banks, insurers, fintechs, and other financial institutions to serve the SME market. Through strategic partnerships, Littlefish delivers solutions that streamline financial operations, enhance digital payment processes, and improve access to credit, enabling banks to maintain and grow their SME customer base.
Despite the critical role of SMEs in driving employment and economic activity across Africa, a significant number of these businesses remain underserved by traditional banking and fintech services. Littlefish’s platform is designed to fill this gap by providing SMEs with the tailored financial tools they need to thrive.
CEO and co-founder Brandon Roberts, with his extensive background in enterprise software and a deep understanding of the African fintech landscape, played a pivotal role in attracting TLcom Capital’s investment. TLcom was particularly impressed by Littlefish’s clear vision and its ability to execute effectively, which were key factors in their decision to invest in the startup.
