A fintech startup co-founded by Bryan Habana (who spent more than 15 years serving on South Africa’s national rugby team) Paymenow, based in Stellenbosch South Africa, has announced that it had secured a R4-million ($231k) seed funding from ViaMedia, a South Africa-based mobile services provider which is part of the Digital Ecosystems Group (formerly Blue Label Mobile).
“ViaMedia and the Digital Ecosystems Group will enable us to draw down on a wealth of product and operational expertise as well as access to a funding book that will allow our business model to scale locally as well as to the rest of Africa and Latin America,” said Habana.
Here Is What You Should Know
- The latest investment will assist Paymenow in maintaining regular cash flow, while it aims to reach operational break-even by the end of the 2020 fiscal year.
- With this investment, Digital Ecosystems Group will assist the startup in its business development efforts as well as introduce it to further funding and working capital.
- According to Group CEO of Digital Ecosystems Group, Garth Mackintosh, PayMeNow further enables and accelerates DigiCo’s mobile financial services strategy.
Read also: MoneyFellows, Egyptian Digital Savings-and-Loans Startup Closes $4 Million Series A Funding
Why The Investor Invested
Digital Ecosystems — previously Blue Label Mobile — houses a variety of complementary tech companies that provide an ecosystem of products and services to mobile phone users.
It enables the rapid rollout of mobile-mediated sales, financial services, banking, couponing, loyalty programmes, rewards, omni-channel communications, OTT services, ticketing, transport, media advertising, lifestyle, education, informational and entertainment content, streaming music and video, mega promotions, gaming and location-based services through companies like ViaMedia, Cellfind, Hyve Mobile, Airvantage and other subsidiaries and investments.
“We are excited to welcome Paymenow to ViaMedia, and more broadly, to our stable of ICT companies. We see fantastic growth prospects and complementary product offerings and clients across many of our group companies,” Garth Mackintosh said.
A Look At What The Startup Does
The startup, which was founded last year by former Springbok rugby player Bryan Habana and Deon Nobrega offers a financial wellness and inclusion platform that allows employees early access to already earned wages.
The app uses gamification to drive financial education and inclusion amongst its users, and is working with employers to help move South Africans out of a vicious debt cycle and into a savings mindset.
“Our business model and product, which entails a fully integrated business to business to consumer tech platform, has passed minimum viable product status and is ready to scale,” says Paymenow MD and co-founder Deon Nobrega.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.