Paymenow, a fintech startup out of Stellenbosch, has had an incredibly successful week.
The firm offers a solution whereby employees can access a percentage of their earnings for a month ahead of payday. Come payday this advance is deducted from an employee’s total pay cheque.
It’s an incredibly clever solution, especially in an age where predatory pay-day loans exist.
On Tuesday, Paymenow announced it had concluded an initial equity investment round with ViaMedia for a R4 million equity stake.
The startup will use this investment to assist with operational cash-flow in the short term with a view to reaching break-even from an operational standpoint by the end of the fiscal year.
“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,” said Paymenow managing director and co-founder, Deon Nobrega.
Then on Wednesday Paymenow announced that it had been accepted into the Catalyst Fund global fintech accelerator. The accelerator is managed by BFA Global and supported by UK aid and JPMorgan Chase & Co.
The Catalyst Fund is fiscally sponsored by Rockefeller Philanthropy Advisors.
The programme provides Paymenow with £80 000 (~R1 727 253) in grant capital, expert-led venture building support for six months and one on one connections with investors and experts that can assist with scaling the business.
This grant will assist the firm in expanding its team according to Paymenow business development head and co-founder, Bryan Habana.
“The unencumbered grant funding assists us in the short term to expand our team as we look to hire an experienced Client Success Manager to help with sales and account management,” says Habana.
“More importantly, it gives Paymenow the validation we so vehemently defend as it pertains to our “business for good” ethos. Catalyst Fund and its Investor Advisory Committee, who lead sourcing for the program, performed stringent due diligence to ensure Paymenow ticks all the boxes in terms of a fintech that enables responsible financial inclusion,” he adds.
Joining Paymenow in the Catalyst Fund accelerator is WellaHealth and Flex Finance from Nigeria, Mango Life and Graviti from Mexico and KarmaLife from India.
You can find out more about Paymenow’s solutions and how its addressing the problem of payday loans responsibly, here.
A good week for Paymenow, here’s hoping the good fortunate persists.