Finch Technologies, a Cape-based fintech focused on creating better fintech ecosystems, has made a further significant investment to become the majority shareholder in South Africa’s leading business finance marketplace, FundingHub, following a previous investment in 2019.
“We made a second investment into FundingHub, due to its dramatic growth over the past 18 months. We are confident about the ongoing expansion of this business. We are particularly interested in investing in technology-driven businesses that help financial service providers originate sales, onboard new clients in a seamless manner, and enrich their own database. It is through the seamless origination and onboarding that real value is offered to businesses and consumers,” explains Michael Bowren, Finch Technologies CEO.
FundingHub offers 33 banks and alternative lenders able to meet the needs of South African SMEs looking for finance to grow their businesses. The business which started four years ago allows SMS to easily compare funding solutions at no charge, from R10,000 up to loans of over R100 million. SMEs that apply for funding on FundingHub have been in business for at least six months with R350,000 annual turnover. They are matched to the most appropriate lender.
Says Bowren, “Finch Technologies is rapidly evolving both our marketplaces, Fincheck and FundingHub to provide an end-to-end solution. This means that both platforms will allow South Africans to apply for financial and insurance products, upload the relevant documents and compare, in real-time, the offers that banks, lenders, and insurers have available. This is a significant advance in the South African market and a necessary move towards an open financial ecosystem.
Bowren continues, “Since the start of Covid-19, FundingHub has seen a dramatic increase in requests for financing from SMEs. This is for two main reasons. The first is SME distress and their struggles to manage cash flow. The second has been the inability or reluctance to visit a physical bank branch. SME owners are therefore searching and comparing options online. Businesses and lenders have therefore been driven to accept a full digital solution which encompasses the vision of Finch Technologies which is moving toward a full end-to-end marketplace, offering everything short of disbursing the final product.”
Finch Technologies owns 100% of South Africa’s largest financial comparison marketplace, Fincheck which helps consumers and businesses find the most appropriate finances for their needs.
Finch Technologies currently offers three technology-enabled offerings – two marketplaces (Fincheck and FundingHub), a document collection and verification technology (Gathr), and a credit rehabilitation technology that presents an individual’s credit report simply and for free (BetterScore).