South Africa’s Yoco Secures $100 Million Credit Facility to Expand SME Financing

South African fintech company Yoco  has secured a $100 million credit facility from investment firm Victory Park Capital  Advisors to expand access to working capital for independent businesses through its Yoco Capital platform.

The funding will enable more merchants using Yoco’s payment services to access business financing without submitting separate applications or providing collateral. Eligible businesses receive pre-approved funding offers directly through the Yoco app, based on their actual sales performance, with funds transferred to their accounts once they accept the offer.

Repayments are linked to merchants’ daily takings, allowing businesses to repay according to their sales activity rather than follow a fixed repayment schedule. The model is designed to make financing more accessible to small business owners who may have limited time or face challenges securing traditional business loans.

According to Yoco co-founder Carl Wazen, the credit facility represents a significant step in expanding the company’s support for independent businesses across South Africa. He highlighted how the platform allows merchants to receive funding offers without having to leave their businesses to seek financing or go through lengthy application processes.

Since 2018, Yoco has facilitated more than R6.5 billion in funding to over 40,000 merchants through its financing partners. The new $100 million facility marks an expansion of its working capital offering and its efforts to provide businesses with financing based on their transaction history.

Victory Park Capital Advisors is providing the credit facility as Yoco looks to extend access to funding for more businesses operating on its payments platform.