Yoco raises over $100M to expand fintech solutions for South Africa’s small businesses

Yoco, a South African fintech startup founded in 2015, has raised over $100 million to transform how small businesses accept payments. The company, which began as a provider of card machines, now serves 200,000 merchants with point-of-sale software and online payment solutions.

Yoco’s founding and mission

Yoco was founded in 2015 by Carl Wazen, Katlego Maphai, Lungisa Matshoba, and Bradley Wattrus, four entrepreneurs with no prior experience in the payments industry. According to TechCabal, their goal was to make card payments accessible to small businesses in South Africa, a market underserved by traditional financial institutions.

The company’s first product was a small card machine designed specifically for small businesses, addressing a critical gap in the market.

Funding and growth

Yoco raised its initial funding round of $560,000 in 2015, primarily from angel investors, including early backers like Robby Hilkowitz and Greg Kidd. According to TechCabal, the company has since raised over $100 million, including an $83 million Series C round in 2021.

This funding has enabled Yoco to expand its product offerings beyond card machines. In 2020, the company launched point-of-sale software and online payment solutions, broadening its appeal to a wider range of small businesses.

Product expansion and challenges

One of Yoco’s most successful product launches was Yoco Go, a smaller and more affordable card machine introduced in 2019. The product quickly gained traction, with 15,000 new merchants signing up in a single month, as reported by TechCabal.

However, Yoco faced significant challenges during the COVID-19 pandemic. At the height of the lockdown, the company’s transaction volumes dropped by approximately 90%, forcing it to adapt its strategy and accelerate the diversification of its services.

By 2026, Yoco had grown to serve 200,000 small businesses, cementing its position as a key player in South Africa’s fintech ecosystem.

Leadership changes

In 2025, Katlego Maphai, one of Yoco’s co-founders and its former CEO, stepped down from his executive role. According to TechCabal, Maphai remains involved with the company as a strategic adviser.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Yoco’s growth story highlights how fintech startups in emerging markets can evolve from single-product solutions to comprehensive platforms. The shift from hardware (card machines) to software (point-of-sale and online payments) demonstrates the importance of adaptability, especially in markets with unique challenges like South Africa. For founders, Yoco’s trajectory underscores the value of solving a clear pain point—access to card payments—for underserved small businesses, then scaling horizontally. The 90% drop in transaction volumes during COVID-19 also serves as a reminder that resilience and product diversification are critical for survival.

Key takeaways

• Yoco was founded in 2015 by four co-founders to make card payments accessible to small businesses in South Africa.
• The company has raised over $100 million in funding, with an $83 million Series C round in 2021.
• Yoco serves 200,000 small businesses as of 2026, expanding from card machines to point-of-sale software and online payments.
• Yoco Go, launched in 2019, drove rapid adoption, signing up 15,000 merchants in one month.
• The company faced significant challenges during COVID-19 but recovered by diversifying its product offerings.

FAQ

What does Yoco do?

Yoco provides card machines, point-of-sale software, and online payment solutions to small businesses in South Africa. Its products are designed to simplify payment acceptance and business operations.

How much funding has Yoco raised?

Yoco has raised over $100 million in funding, including an $83 million Series C round in 2021.

How many businesses does Yoco serve?

As of 2026, Yoco serves 200,000 small businesses across South Africa.

What was the impact of COVID-19 on Yoco?

During the COVID-19 lockdown, Yoco’s transaction volumes dropped by around 90%. The company responded by diversifying its product offerings to include point-of-sale software and online payments.

Related on Lazyfounder

• More startup news