Franc, South African Fintech Startup Secures $522k Seed Extension Round

Franc, a South African financial app, has secured ZAR8 million (US$522,000) in a seed extension round and unveiled a B2B solution that allows partner organizations to quickly and easily deploy savings and investment products.

Franc was founded in 2017 by Sebastian Patel and Thomas Brennan, who were upset by the complexity and high barrier to entry of existing investment offers, as well as concerned about the low rate of investment among South Africans.

In 2021, the startup grew 400%, and it has now launched its B2B service, Franc Business. Using Franc’s technology and licensing, businesses will be able to offer high-quality investment products to their own customers.

The news comes after a recent seed extension raise of ZAR8 million (US$522,000), which includes investment from 4DX Ventures, a pan-African venture capital firm. The financial infusion will help fund the B2B project, which is aimed at companies who want to increase customer loyalty and value proposition by providing a “plug and play” investment and savings solution.

“The simplicity and low cost of Franc Business are its main advantages. “As a B2B player, we provide a single application programming interface (API) that allows us to rapidly and effectively interact with client platforms,” Patel explained.

“Without the headache of regulatory red tape and long technical development, Franc Business clients can assist their consumers start saving or investing right away, enhancing loyalty and value for the business.”

4DX Ventures managing partner Peter Orth commented on his firm’s choice to invest in Franc, saying that his firm was passionate about increasing the possibility for everyone to save and invest, as it is a fundamental component of being able to grow wealth over time.

“We think Franc has a great vision for how they’re going to do it in South Africa, and we’re eager to help,” he said.