Futuregrowth Backs Sourcefin With R150 Million Investment To Bridge The Funding Gap
Futuregrowth Backs Sourcefin With R150 Million Investment To Bridge The Funding Gap. Sourcefin believes in empowering South Africa’s small, medium, and micro enterprises (SMMEs) with access to the funding and resources they need to thrive. The company is thrilled to share a transformative milestone in its journey: Futuregrowth Asset Management has invested R150 million into Sourcefin through their High Growth Developmental Equity Fund (HGDEF). This partnership is not just about financial backing; it’s about scaling its impact and enabling SMMEs to realise their full potential.
South Africa faces a critical R300 billion gap in SMME financing, a challenge Sourcefin has been addressing since its founding in 2020. SMMEs are the backbone of the South African economy, contributing over 30% of the GDP and playing a crucial role in job creation and community upliftment. Yet, traditional financing options often overlook these businesses, particularly when it comes to fulfilling government-issued orders.
This is where Sourcefin comes in. The company’s innovative platform integrates financing, supply chain management, and project oversight to provide comprehensive support for SMMEs. Whether it’s purchase order funding, invoice discounting, or access to a network of over 2,000 pre-vetted suppliers, its solutions are tailored to meet the unique needs of small businesses.
Futuregrowth’s investment not only validates Sourcefin’s approach but also accelerates its ability to make a difference. With this R150 million injection, the company is on track to deploy over R1 billion in funding by the end of the financial year in February 2025. This capital will empower SMMEs to deliver critical projects across sectors like emergency housing, medical equipment, construction, and more.
In the words of its CEO: “There is no doubt about the massive impact that well-supported SMMEs can have on our country. 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.” said Joshua Kadish, Sourcefin’s Co-Founder, Director and CEO.
Amrish Narrandes, Head of Private Equity & Venture Capital at Futuregrowth, echoes this sentiment: “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.”
More than 90% of Sourcefin’s clients represent minority demographics, including black female-owned and youth-owned businesses, as well as rural entrepreneurs. This isn’t just about financial support—it’s about empowering communities and driving socioeconomic development. With each project successfully delivered, lives are transformed, and South Africa’s economy is strengthened.