Events

August 20, 2019

AlphaCode awards R16 million to 8 fintech startups in SA’s most prestigious startup programme

<a href="https://rmih.co.za/" data-saferedirecturl="https://www.google.com/url?q=https://rmih.co.za/&source=gmail&ust=1566393591279000&usg=AFQjCNHzdYQMA2woXLgho0OWFPp_Mt697w">Rand Merchant Investment Holding</a> (RMI), through <a href="https://www.alphacode.club/" data-saferedirecturl="https://www.google.com/url?q=https://www.alphacode.club/&source=gmail&ust=1566393591279000&usg=AFQjCNG4XZlUAqdUK8f36KV7CwgP6hu6Nw">AlphaCode</a>, has awarded entrepreneurial packages valued at R16 million to eight of SA’s most promising financial services startups. All businesses are under two years old and at least 51% owned by black South Africans.

Each business will receive a package valued at up to R2 million including R1 million in grant funding and R1 million in support services. This includes mentorship, monthly expert-led sessions, exclusive office space in Sandton, marketing, legal and other business support services as well as access to like-minded entrepreneurs, RMI’s extensive network of thought leaders, potential clients and capital.

The AlphaCode <a href="https://www.alphacode.club/incubate" data-saferedirecturl="https://www.google.com/url?q=https://www.alphacode.club/incubate&source=gmail&ust=1566393591279000&usg=AFQjCNGIw91bCvw4_DYSta5wuflMPH5Rtw">Incubate</a> initiative, in partnership with Merrill Lynch South Africa and <a href="http://www.bafokengholdings.com/index.html" data-saferedirecturl="https://www.google.com/url?q=http://www.bafokengholdings.com/index.html&source=gmail&ust=1566393591279000&usg=AFQjCNHGwpIVDTrjWwnP1VChb89ZdMrFZg">Royal Bafokeng Holdings</a>, identifies South African financial services entrepreneurs with extraordinary ideas and businesses that could impact the financial services industry. More than 200 startups applied to participate. Of these, twelve made it to the final pitch evening and eight recipients were selected.

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<h2><strong>The winners are: </strong></h2>

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<strong>Name: </strong>Mari

<strong>Founders: </strong>Lebogang Miya, Anesu Chogugudza, Tawanda Sibanda

<strong>Description:</strong>

A di<span lang="EN-US">gitised layby platform which allows for digital payments and savings. Customers should be able to make a layby purchase without incurring the cost of travelling to and from the store to make payments. Mari also allows people to create credit scores for themselves through an already existing payment structure without a bank account.</span>

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https://youtu.be/lgV0NB4iEFk

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<strong>Name: </strong><a href="https://www.spoonmoney.com">Spoon Money</a>

<strong>Founders: </strong>Nicolette Swartz, Lorna McLaren

<strong>Description:</strong>

A group-based micro-working capital finance platform for female informal traders. <span lang="EN-US">Despite being banked, informal traders in townships have almost no access to credit to support their businesses. Thus, their opportunity to create sustainable, and more predictable, incomes from their businesses is compromised.</span>

https://youtu.be/6j0CI5JQ_qE

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<strong>Name: </strong><a href="https://www.isiduli.africa/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.isiduli.africa&source=gmail&ust=1566393591279000&usg=AFQjCNEOkSniQJyP50SdIn_JgEsS9MhD6g">IsiDuli</a>

<strong>Founders: </strong>Lunga Nodliwa, Kobela Matemane

<strong>Description:</strong>

Credit product for the development of backyard rental stock in townships. There is a lack<span lang="EN-US">of access to development finance for property owners in townships and very little affordable rental stock for consumers.</span>

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https://youtu.be/hAx1vg8kIuI

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<strong>Name: <a href="https://www.oyi.co.za/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.oyi.co.za&source=gmail&ust=1566393591279000&usg=AFQjCNGNLbI4PHXRZFBHHlNu4Z6WAE5EfA">Oyi Medical Card</a></strong>

<strong>Founders: </strong>Tamsanqa Ngalo

<strong>Description:</strong>

Payments technology integrated into prepaid card for restricted medical spend only. The majority of South Africans cannot afford medical-aid and do not always have cash readily available to pay for unexpected medical expenses.

Oyi is a prepaid card solution to help those who would otherwise not be able to access the medical care that they should be able to afford.

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https://youtu.be/qaGMNjHDdTI

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<strong>Name: <a href="https://projects.invisionapp.com/share/93S07QZSP57" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://projects.invisionapp.com/share/93S07QZSP57&source=gmail&ust=1566393591279000&usg=AFQjCNHwA4ocJF2WwH98rHJeBCGmNznfyQ">Budgie</a></strong>

<strong>Founders: </strong>Nchila Mokoena, Popo Sechele, Thulo Sechele, Ruben Engelbrecht

<strong>Description:</strong>

Budgie is a free interactive application, that facilitates and assists spending based on a user’s created budget. From alleviating financial stress, to boosting financial freedom and control. Budgie will change the way people live their lives through better financial habits.

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<strong>Founders: </strong>Thabang Butelezi

<strong>Description:</strong>

On demand vehicle insurance specifically targeted at out of warranty vehicle owners. 70% of cars on SA roads are not insured because it’s not affordable. OkGO.live gives access to people who are locked out of the market by reducing accident repair costs by +50%, reducing fraud claims by 75% and making customers self-service to lower premiums, while providing added value to customers through vehicle data analytics to prevent mechanical failures and more.

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<strong>Name: </strong>Olova

<strong>Founders: </strong>Sylvester Maganye

<strong>Description:</strong>

Olova offers a single payment platform for public transport systems. The lack of integration and interoperability between public transport systems is problematic and this what Olova aims to fix.

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https://youtu.be/RMRFX0OM4sI

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https://youtu.be/51knRJXLSwE

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<strong>Name: <a href="https://www.getvanced.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.getvanced.com/&source=gmail&ust=1566393591279000&usg=AFQjCNHjQfrKc0LLvvqQvStngC1X6T4Qsw">GetVanced</a></strong>

<strong>Founders: </strong>Raeesa Gabriels, Brendon Harris

<strong>Description:</strong>

<span lang="EN-US">Income advancing platform based on employee’s earned income.</span><span lang="EN-US">Millions of low-income workers live from one pay day to the next and are financially stressed. The most pressing everyday issue for South Africans is managing cash flow and the biggest issue is timing mismatches between income and expenses because they lack a savings buffer. GetVanced seeks to solve the issue of income timing by paying out employee advances based on income earned to date.</span>

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The Incubate programme has disbursed R21 million in funding to 23 black-owned financial services businesses since it began four years ago. “We have seen a notable improvement in the quality of applications year on year. This is indicative that AlphaCode is making an impact in the maturing of the fintech ecosystem. The intention behind AlphaCode’s <em>Explore, Incubate</em> and <em>Accelerate </em>programmes is for RMI to discover the next OUTsurance or Discovery; we want to identify, partner and grow the future of financial services in South Africa. In fact, two of the participants this evening came through our Explore programme,” says Dominique Collett, head of AlphaCode.

She added that, “We have seen an increase in the number of female-led startups applying for this year’s programme – there are four female cofounded startups in the top 12 and three in the final six. There was also a stronger focus this year on alternative forms of lending.”

During the event, contestants had just three minutes to pitch their businesses, with a couple of minutes set aside for questions from a top panel of judges. These included Barry Swartzberg, co-founder of Discovery and CEO of Vitality; Danie Mathee, CEO of OUTsurance; Mary Vilakazi, COO of Firstrand, Katlego Kobue, iKatlego has a accountnvestment manager at Royal Bafokeng Holdings; Raymond Ndlovu, investments executive at Remgro and Dominique Collett.

Albertinah Kekana, CEO at Royal Bafokeng Holdings commented: “This year the Incubate programme included a selection bootcamp so the organisers got a better understanding of the entrepreneurs and their ideas prior to selecting the finalists. It is very encouraging to see that a number of the businesses are solving problems in the township economy – issues that are generally ignored by corporates. Participants are part of those communities and deeply understand the financial issues these communities face.”

Julia Benadie, Chief Operating Officer at Merrill Lynch said: “We are delighted to be supporting the AlphaCode Incubate programme for the fifth time this year. It is a fantastic initiative creating lasting positive change. As a business committed to responsible growth we recognise that it is essential to equip entrepreneurs with the tools and training they need to play an active role in building the fintech sector in South Africa.”

The AlphaCode <em>Incubate</em> programme deals with common challenges that financial services startups face. Says Andile Maseko, Head of Ecosystem Development at AlphaCode, “Whilst the initial attraction of Incubate is the money, we have had most of our previous participants say that they value the top rate mentorship and learnings they get even more. We showcase key learning modules such as regulation in financial services, fundraising and digital marketing basics.

“With the support networks that these eight businesses are now able to access, there is great expectation for their business development and traction over the 12 months of the programme.”

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AlphaCode awards R16 million to 8 fintech startups in SA’s most prestigious startup programme

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