FinTech SME capital provider, ProfitShare Partners, has secured R100m (€5.1m) from the South African SME Fund to provide small and medium enterprises with much-needed capital.

SMEs have been severely affected by COVID-19 and reports presented by the National Planning Commission show that as many as 92% of small businesses are struggling to operate.

This reflects in the tourism sector. “Roughly 49 000 SMEs are already negatively affected and many will close shop. These SMEs provide unique and authentic experiences sought after by travellers,” said CEO of the Tourism Business Council of South Africa, Tshifhiwa Tshivhengwa just two weeks ago.

ProfitShare Partners partners financially on transactions with SMEs to deliver successfully on their orders and contracts with reputable organisations, allowing them to access more business and grow exponentially in a short time.

The South African SME Fund invests in intermediaries that provide debt and equity instruments to SMEs. The fund recognised the potential that ProfitShare Partners’ business model offers to SMEs for high-impact growth, and provided the company with R100 million (€5.1m) that will assist as a catalyst for more growth in the SME market. 

The SA SME Fund was pleased to announce the investment as it could not be more timeous, said CEO of the Fund, Kesto Gordhan. 

“This deal is a great win for SMEs who can’t access traditional funding. This capital helps ProfitShare Partners financially partner with hundreds of SMEs to catalyse their businesses to becoming bigger and more sustainable, enabling them to attract traditional funding in the future,” said CEO and Founder of ProfitShare Partners, Andrew Maren.