Futuregrowth invests R150 million in SMME funding fintech, Sourcefin

Futuregrowth Asset Management has announced a R150 million investment into Sourcefin, a leading South African fintech and alternative funding provider dedicated to providing access to finance and specialist supply chain support for small and medium-sized enterprises (SMMEs).  

This milestone investment, made through Futuregrowth's High Growth Developmental Equity Fund (HGDEF), further cements the firm’s strategy in supporting high-growth businesses, including the likes of hearX, Yoco, Pineapple, Retail Capital, Ozow and Cash Connect. 

Founded in 2020 and a disruptor in the SMME lending space, Sourcefin is an enabler of the forgotten SMME and addresses the critical R300 billion gap in SMME financing, empowering businesses to overcome working capital challenges and successfully fulfil public and private sector purchase orders (binding agreements on which the SMME is obliged to deliver). 

Sourcefin is set to deploy more than R1 billion in funding for the financial year, ending February 2025, through its innovative platform which integrates financing, supply chain management, and end-to-end project support.  

“The SMME sector is vital for South Africa's economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders,” says Amrish Narrandes, Head of Private Equity & Venture Capital at Futuregrowth.  

“Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfilment while maintaining strong financial performance made this a compelling investment opportunity.” 

Sourcefin’s platform offers more than just financing. It provides clients access to a network of over 2,000 pre-vetted local and international suppliers and ensures operational efficiency and risk management through advanced technology and project oversight. In opposition to traditional models, Sourcefin’s funding approach is opportunity-centric, providing a lifeline to SMMEs where more traditional funders may have declined applications for funding based on history, or a lack thereof.  

A crucial contributor to socioeconomic development and improved service delivery, the SMME sector enables previously disadvantaged and minority groups to enter the economy and accounts for over 30% of South Africa’s GDP.  

With more than 90% of Sourcefin’s client base falling within the minority demographic in the country - including black female-owned and youth-owned businesses, as well as rural-based entrepreneurs -  Sourcefin’s business offering extends beyond practical financial lending and empowers a significant portion of economic and societal development in South Africa. With each order successfully delivered, the quality of life for communities across the country is enhanced.  

“There is no doubt about the massive impact that well-supported SMMEs can have on our country,” says Joshua Kadish, Co-Founder, Director and CEO of Sourcefin. “With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”  

In addition, the strategic partnership with Futuregrowth accelerates Sourcefin’s ability to provide innovative financing solutions, scale its operations, enhance its technology platform, and expand its funding deployment nationwide.  “Our investment into Sourcefin aligns perfectly with HGDEF’s mandate to back innovative businesses that drive real economic impact,” Narrandes adds.

“Futuregrowth’s beginnings as the first socially oriented fund to be launched in South Africa align perfectly with a shared goal of driving real business equity and impact within the country.”  

The investment comes at a pivotal time, with government spending projected to exceed R7 trillion over the next three years. Sourcefin’s core products - purchase order funding and invoice discounting - combined with its proprietary technology platform, uniquely position the company to help SMMEs access these opportunities efficiently and sustainably.  

Key facts 

Investment amount: R150 million 

Capital deployed by Sourcefin in FY25: Over R1billion  

Beneficiaries of Sourcefin funding include: Emergency housing projects, medical equipment to allay shortages in government hospitals, HIV health solutions, construction, security, civil maintenance and more.  

Sourcefin strategic partners: City of Joburg, Gauteng Department of Economic Development, Gauteng Enterprise Propeller, Northern Cape Department of Economic Development and Tourism.  

Market opportunity: R300 billion gap in SMME financing 

Government spending forecast: Over R7 trillion (next 3 years) 

SMME contribution to GDP: SMMEs account for over 30% of South Africa’s GDP

Supplier network: Over 2,000 pre-vetted local and international suppliers 

About Futuregrowth's Private Equity and Venture Capital Division 

Futuregrowth Asset Management's Private Equity and Venture Capital business is a leading alternative investor in early-stage, high-growth businesses across Southern Africa. The division, which is part of Futuregrowth's R202 billion asset management business, focuses on delivering both commercial returns and meaningful developmental impact through its various investment mandates. The business manages specialist funds, including the Development Equity Fund and the High Growth Development Equity Fund (HGDEF), which target investments in sectors critical to South Africa's economic development.

With a 25-year track record in developmental investments, the team has built a strong portfolio of successful investments across fintech, Insurtech, medtech and other high-growth sectors. Through active partnership with portfolio companies, the business provides not just capital, but strategic guidance, operational support, and access to a broad network of industry expertise. This approach has resulted in successful investments in companies like Yoco, Pineapple, Cash Connect, and Retail Capital demonstrating the team's ability to identify, support, and scale innovative businesses that drive both financial returns and societal impact. 

About Sourcefin 

Sourcefin is a South African alternative finance provider and fintech dedicated to providing access to working capital for small and medium-sized enterprises (SMMEs) across the country. Founded in 2020, the company offers purchase order funding and invoice discounting as well as a full suite of services including procurement, project and risk management, and end-to-end service delivery.  Sourcefin is set to deploy more than R1 billion in funding for the financial year, ending February 2025, delivering on its contribution to the vital SMME sector in the country. Through strategic partnerships in the public and private sectors, and funding made available by Sourcefin, over 1000 SMMEs have been empowered to deliver business solutions nationwide.