You can help local startup up Fourex raise R16.3 million in funding

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The prospect of investing seems out of reach for most people but local startup Fourex is letting everybody in South Africa help it fund its next investment round.

Fourex operates forex exchange kiosks where travelers can easily exchange currency, particularly coins, for their local currency easily. The kiosks accept 150 different currencies.

The startup has opened up its second round of funding to all by way of website Crowdcube. Fourex is looking to raise R16.3 million and there are three contribution tiers.

Investing £10 (~R183) doesn’t net you a reward other than the feeling you helped a company grow. Investing £100 (~R1 834) or more will allow you to claim that value back at a Fourex kiosk anytime in the next two years.

For those that invest £5 000 (R91 710) or more you will receive the A Ordinary Share which gives you “one vote in any circumstance; certain pre-emption rights; and rank equally with B Investment Shares in respect of dividends and capital distributions”.

The total equity on offer here is 3.47 percent and the firm has already raised 66 percent of its goal.

“A strong majority of Fourex investors are South African so we believe there will be appetite to participate in this next round. We expect to maintain our high rate of growth. We will expand our reach across the UK and will accelerate our plans to move into international markets. New digital conversion options are on the cards and this expansion will drive revenue. Fourex will become the primary self-service interface between cash and digital money,” says Fourex chief executive officer Anthony Rice.

The firm says that following this investment round it aims to create an online currency pre-order system. This would allow users to create a digital wallet and make withdrawals at a Fourex kiosk.

As a matter of interest, Fourex’s last crowdfunding round drew in £1.98 million (~R36 million). That round was oversubscribed by 243 percent.

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.