UsPlus, a South African fintech company that provides working capital solutions to small and medium-sized enterprises (SMEs), has raised $2 million in funding from the Verdant Capital Hybrid Fund. The investment, structured as junior convertible debentures, will support UsPlus’s expansion of invoice factoring services across key sectors in South Africa.
Founded in 2015, UsPlus addresses the financing gap faced by many SMEs in South Africa, particularly those operating in crucial sectors like manufacturing, logistics, agriculture, renewable energy, and services. The company offers a range of financial products designed to unlock capital tied up in businesses’ production cycles, enabling them to meet procurement demands from larger corporations and improve financial inclusion. UsPlus emphasizes supporting women-led and sustainability-focused ventures.
Invoice factoring, a core service offered by UsPlus, allows businesses to access immediate cash by selling their outstanding invoices at a discount. This provides crucial working capital, particularly for SMEs that often struggle with delayed payments. The company also supports the financing of purchase orders and contracts.
“UsPlus has had a significant impact on the financial landscape for SMEs in South Africa,” said a representative from Verdant Capital. “Their focus on essential sectors and commitment to financial inclusion aligns perfectly with the fund’s mission. This investment will not only generate a return for the fund but also contribute to broader economic development.”
The Verdant Capital Hybrid Fund, with a target size of $100 million, invests in inclusive financial institutions across Africa. It focuses on digitally enabled businesses that serve micro, small, and medium-sized enterprises (MSMEs) and utilizes hybrid capital instruments such as subordinated debt, mezzanine finance, preference shares, and stapled investment structures. This investment marks the fund’s fifth deployment, bringing its current size to $38 million.
UsPlus aims to use the new capital to strengthen its balance sheet and attract further senior debt funding. The company’s developmental agenda prioritizes supporting local manufacturers, logistics providers, farmers, renewable energy companies, and service providers, ultimately boosting their competitiveness. By providing access to flexible working capital solutions, UsPlus enables SMEs to participate more effectively in the broader economy. The company also offers strategic support to its clients at no additional cost.
While UsPlus works across various sectors, its current focus includes empowering women-owned businesses and promoting environmentally sustainable projects. This aligns with a growing global emphasis on impact investing, where financial returns are coupled with positive social and environmental outcomes. The company’s website states its commitment to serving SMEs and providing tailored financial solutions to meet their specific needs.