YOCO HOLDINGS..Status: Approved investment
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Who is our customer
Operating company Yoco Technologies Pty. Ltd. is a mobile-point-of-sale (mPOS) company targeting South African (M)SMEs established in 2013. The company works with acquiring banks to enable small businesses to accept digital payments via cards and electronic payment platforms. Yoco sells the mPOS devices to merchants and then earns revenue in the form of transaction fees thereafter. Yoco also offers clients an electronic portal to manage inventory & transactions and a lending product for its clients thus enabling access to working capital loans.
What is our funding objective?
Yoco is seeking to fill the “acceptance gap” in South Africa, pushing the country towards a more digital and thereby inclusive economy in the process. The acceptance gap is unique in sub Saharan Africa and relates to the fact that a large number of consumers have a credit/debit card or mobile wallets, but not many merchants accept them yet. Yoco is a catalyst for the new digital economy which brings in efficiency, safety and transparency in daily commerce.
Why do we fund this investment?
Yoco’s fintech product designed for (M)SME clients fits FMO’s strategy of catalysing economic growth and bridging the digital divide. SME’s are the growth engine of the South African economy, contributing to 45% of the GDP growth and by providing them with technological solutions that help them get additional business, increase operational efficiency and access to capital, Yoco is helping foster innovation and entrepreneurship.
What is the Environmental and Social categorization rationale?
Yoco is a category C client. In terms of E&S; the company is not active in high risk sectors, it does not do project finance and the average exposure per client is below US$ 25,000. Yoco is not regulated in South Africa. However, its internal policies and risk management framework are well developed.
|Date||Total FMO financing|
|9/6/2018||USD 2.50 MLN|
- South Africa
- Financial Institutions
- Effective date
- Total FMO financing
- USD 0.50 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)