Yoco lands $100M credit line to fund cash advances for South African merchants
What's the deal? Yoco, a South African fintech founded in 2015, has secured a $100 million credit facility led by US-based Victory Park CapitalDealroom has a profile for this one. Try Dealroom →. The Cape Town company will use the money to fund cash advances and working capital for merchants in its network.
The details: This is debt, not equity, so Yoco avoids dilution while building a substantial pool of capital for merchant cash advances. Advances will run up to R1.5 million per client.
What does Yoco do? It provides payment terminals, online payment processing, and business management tools to small merchants. The company says it serves 200,000 merchants and has processed more than $15 billion in payments.
Why it matters: The facility marks Yoco’s first direct entry into the debt market. It has previously facilitated R6.5 billion in merchant financing through partners.
By the numbers: Among all-time debt rounds for enterprise software startups in South Africa, this deal ranks in the 91st percentile by size — a standout in a sample of 2,693 rounds.
The signal: The deal reflects a broader shift toward credit facilities for African fintechs with established revenue and cash flows, from Pollen FinanceDealroom has a profile for this one. Try Dealroom →’s R625 million line from RMBDealroom has a profile for this one. Try Dealroom → to other regional debt deals. For firms with proven lending books, private credit is becoming the capital of choice.
Read more: weetracker.com
Image credit: South African Tourism
