Yoco secures $100 million facility to expand merchant cash advances
The South African payments company will take direct control of more of the financing it offers small merchants, using sales data from its own payment tools to decide who qualifies.
Victory Park Capital, a US investment firm, is providing Yoco with a $100 million credit line to expand Yoco Capital, the South African company's cash-advance arm for small businesses. TechCabal reports that since 2018 Yoco Capital has advanced more than R6.5 billion (about $395 million) to upwards of 40,000 merchants through specialist credit partners; the new line is meant to give Yoco more say over how those advances are priced and how much risk it takes on.
The model runs on payments data. Merchants already processing in-person and online payments with Yoco are assessed on their live sales, and eligible ones see an offer in the app rather than filling in an application. Advances range from R2,000 to R1.5 million with no collateral, and repayments are taken from daily takings, so they rise and fall with trade.
Yoco says none of its lending cohorts has been unprofitable since 2018, including through the pandemic, but TechCabal notes the company released no default rates, write-offs or cohort figures. It plans to extend the service to more of its 200,000-plus merchants, in a country where a 2025 Finfind and African Bank report puts the shortfall in small-business finance at about R350 billion.
Why it matters to you. It is a live test of underwriting small businesses from transaction data rather than bank statements, the kind of model a data-driven fintech in Lagos can learn from.
Sources: TechCabal · 2026-11-09