KwaZulu-Natal-based fintech company iKhokha, which recently won the MTN Financial App of the Year Award, has disbursed more than R2-billion in working capital to its small- and medium-sized enterprise (SME) customer base, in partnership with business-to-business service Retail Capital, now a division of TymeBank.

“In a tough South African economic climate with gloomy daily headlines, to have been able to inject R2-billion worth of working capital into the small business sector in South Africa is a really special achievement and milestone for us collectively,” says iKhokha CEO and cofounder Matt Putman.

According to Putman, to have built a sustainable funding model in this space, speaks to the resilience of the small business sector in the country, despite all the macro negativity.

“Our research shows that 80% of these businesses would struggle to access loans through traditional banks and therefore we are stimulating the part of the market that needs it most,” he says.

Retail Capital managing executive Miguel Da Silva adds that the achievement underscores iKhokha’s resilience and commitment to empowering small businesses.

“The accomplishment not only fuels economic growth but also highlights the value of strong partnerships to provide vital support to entrepreneurs navigating funding challenges in a tough economic landscape,” he says.

In addition to the impact that iKhokha is making in the lives of its merchants, there have also been some structural shareholding changes made on the back of iKhokha’s significant growth over the last five years.

This includes the decision made recently by iKhokha shareholders to spin the business out of the Adumo group.

“iKhokha has become one of the market leaders in the South African SME payments space and we believe that the business is better positioned for growth opportunities as a standalone business,” says iKhokha shareholder Apis Partners MD Nic Smalle.

Capital market company Crossfin Holdings CEO Dean Sparrow, meanwhile agrees with Smalle, adding that “Crossfin, Apis and the International Finance Corporation continue to back the vision of Putman and his team based on their impressive track record”.

Crossfin Holdings has been invested in iKhokha since its inception in 2012.

iKhokha’s SME-focused financial services platform empowers entrepreneurs to accept both in-person and online payments. The fintech also provides access to working capital and offers easy access to business management tools, including daily sales analytics and the ability to set sales targets and track sales performance.

“The underserved self-employed sector of South Africa plays such a vital role in stimulating our economy and helping to bridge the unemployment gap. Their continued growth is fundamental if we want to see our economy grow,” Putnam says.

He adds that the company will continue to help entrepreneurs and SMEs to believe in better business by investing in the SME-focused financial services platform to expose more local SMEs to the digital economy.