Many businesses across the world might be shutting down, as revenue streams have slowed down in flowing in.
Investors might, also, be finding it difficult, financing start-ups, due to the effects of the novel coronavirus that has forced many companies, (both private and public), to shut down operations.
Some start-ups are, however, still securing funding from VCs and Angel investors, to push their start-ups.
One of such start-ups is ProfitShare, receiving funding from a South African-based SME Fund.
ProfitShare Partners is a South Africa-based start-up that has secured US$5.87 million, in debt and quasi-equity funding.
To further provide small and medium enterprises, with much-needed capital, to push for growth and as assistance, during the COVID-19 crisis.
The start-up has been able to create a solution that borders around the use of technology to enhance SME.
Creating a platform that synchronizes performance and delivery, through its profit-sharing business base model, while also, providing professional expertise and guidance.
This capital helps ProfitShare Partners financially partner with hundreds of SMEs to catalyse their businesses to becoming bigger and more sustainable, enabling them to attract traditional funding in the future”, Andrew Married, Founder/CEO, ProfitShare explained, as he spoke on the development.
“Our model is designed, to give SMEs a boost. As opposed to providing capital as a form of a loan, we share in the profit and assist our clients, in achieving financial sustainability.
To the point where they are, either in a position to qualify for traditional finance, or they no longer require finance”, Andrew concluded.
Also speaking on this is, Ketso Gordhan, CEO of the SA SME Fund, who explained that the availability of funding and access to working capital had always been a challenge for SMEs in Africa.
“This has been exacerbated, by the country’s economic crisis, which has been deepened, by the pandemic. PSP will provide SMEs with an alternative funding model, to act as a catalyst for their survival and growth”, Ketso explained.
“The SA SME Fund is, extremely, pleased to be announcing this investment; it could not be more timeous”, he concluded.
Featured Image: innovation-village
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