Sasfin takes equity stake in South African lendtech Payabill
Johannesburg-based Sasfin has taken an equity stake in lender Payabill as it seeks out SME growth.
Financial details were not disclosed. Payabill, a 100% digital lending business, provides working capital and/or trade finance to small businesses.
Sasfin sees itself as a South African business challenger bank. It was founded in 1951. However, last year it launched its digital platform, B\\YOND, for SMEs.
“Sasfin has been investing in fintechs, building digital capabilities (such as B\\YOND) and working with third parties (such as Xero Accounting) for a number of years with the aim of adding value to our business and wealth clients. Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment,” says Sasfin CEO Michael Sassoon.
Payabill CEO Eli Michal launched the start up in South Africa in 2017. Payabill settles suppliers directly for its clients and allows clients to select their own extended payment terms.
Currently, Payabill offers loans of up to ZAR 150,000 ($10,700) to businesses. The intention is that with the investment made by Sasfin, Payabill will be able to offer larger loans to SMEs in the near future.
With the deal, SMEs can borrow digitally, via Payabill, and bank via B\\Yond from Sasfin – with the aim to reduce admin and costs.