TPG-backed Yoco secures $100m private credit facility from Victory Park
South African fintech company Yoco Technologies, backed by private equity firm TPG, has secured a $100m private credit facility from Victory Park Capital Advisors to expand financing for small businesses, according to a report by Bloomberg. The transaction marks Yoco's first direct borrowing arrangement and will reportedly allow the company to provide working capital and cash advances to…
South African fintech firm Yoco Technologies, led by private equity firm TPG, has recently secured a $100 million private credit facility from Victory Park Capital Advisors to boost support for small businesses, according to Bloomberg. This marks Yoco's initial direct borrowing endeavor, which will facilitate working capital and cash advances for merchants utilizing its payment platform.
The financing options range from ZAR2,000 to ZAR1.5 million, aimed at aiding businesses in inventory purchases, operations expansion, or equipment investments.
Victory Park, managing around $3.6 billion in assets, has made over $12 billion across 260 investments since 2007. Yoco, which has already raised over $150 million in equity from investors, including TPG and Dragoneer Investment Group, has distributed approximately ZAR6.5 billion in merchant financing through third-party partners. Established in 2015, Yoco presently serves around 200,000 merchants and has processed over $15 billion in transactions.
The credit facility underscores the increasing use of private debt in financing African fintech companies as they strive to address gaps in traditional bank lending.
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