Stellenbosch-based financial wellness platform Paymenow, led by South African entrepreneur Deon Nobrega, has secured a $14-million debt facility through Rand Merchant Bank (RMB) to fuel its growth and scale its web-based app.
The impressive performance of Paymenow since its launch, as well as the growth in the retail, mining, security, cleaning, and facilities management industries, prompted the debt facility.
The $14-million funding will play a crucial role in the group’s strategic expansion plans as it seeks to extend its footprint within South Africa and expand to other African countries.
Founded in 2019 by Deon Nobrega, Bryan Habana, Willem van Zyl, and Gerry Potgieter, Paymenow is a fintech platform that seamlessly integrates with employers’ payroll systems to provide an earned wage access solution, allowing employees to access a predetermined percentage of their salary before payday.
The startup presently serves more than 200,000 employees, with plans to double its growth projections in the next year.
As a leading earned wage access (EWA) platform in Africa, Paymenow has expanded to Namibia and Zambia, and is gaining momentum in both the private and public sectors.
Commenting on the deal with RMB, Nobrega, Paymenow CEO and co-founder, stated: “Access to funding, such as through the agreement with RMB, is a gratifying acknowledgment of the strength of our model, and a key enabler of our future growth.”
Under Nobrega’s leadership, the startup is on the brink of expanding its operations into key African markets, including Lesotho, Ghana, and Kenya, fueled by a $14-million debt facility.
With its unique ability to offer liquidity while maintaining the financial well-being of its users, the platform has already made a significant impact on the large segment of the population seeking credit access.
Nobrega himself has reported that the platform’s services are highly sought after in South Africa, especially among the 25 million active credit customers, over 10 million of whom are now in arrears.
