Picture: ISTOCK
Picture: ISTOCK

Related articles

VENTURE capital technology fund Grotech has raised R62m, and is now in a position to invest in disruptive, high-growth technology companies.

Grotech joint CEO and chief investment officer Clive Butkow said an average investment of R10m would focus on financial technology (fintech) ventures.

In association with Caleo, Grotech plans to build a R200m portfolio of disruptive, high-growth technology companies.

"We have probably between 10-15 companies that we are talking to at the moment. Only one or two are in advanced discussions. Some of them are fintech; some being in banking and insurance," Mr Butkow said.

He said Grotech was already talking to some of the established financial services companies to look at opportunities for co-investing.

There was also an opportunity for the companies Grotech was looking to acquire to work with banks, he said.

Earlier this month, financial services group Sasfin said it wanted to buy financial technology companies as part of its plan to enhance its banking offering. The acquisitions will be made through Sasfin’s Private Equity business. Barclays Africa has already tied-up with RainFin, a platform that facilitates unsecured lending online.

Barclays Africa said last month it was looking to cut the costs it incurs when advancing loans to small and medium enterprises by using the online platform of its financial technology partner, RainFin. Barclays Africa owns 49% of RainFin and sees an opportunity to advance loans in a cheaper and faster manner through the RainFin online credit marketplace as an alternative to the costly traditional Absa branches.

First National Bank has played a leading role in innovation in financial services, and Standard Bank launched an incubator in the past year to develop innovative and disruptive entrepreneurs.

Grotech said Caleo Capital, a wealth and asset management business, had invested significant capital into Grotech to help build and grow its venture capital interests.