Yoco’s $100 Million Boost Is Putting Cash in the Hands of 200,000 African Small Businesses

South Africa’s Yoco has just secured a $100 million credit facility from Victory Park Capital, a move that will expand working-capital advances for the small and independent businesses that form the backbone of the country’s economy. The Cape Town-based payments company, already backed by TPG, will use the money to scale its Yoco Capital offering so merchants can access cash advances ranging from R2,000 to R1.5 million directly through the app.

For many small business owners, traditional bank loans remain slow, paperwork-heavy, or simply unavailable. Yoco’s model flips that. Because the company already processes a merchant’s daily card sales, it can pre-approve advances based on real transaction data and deposit funds instantly. Repayment happens automatically through small deductions from future takings, so there is no fixed monthly instalment to manage and no collateral required.

This is not Yoco’s first step into lending. Since 2018 the company has channelled more than R6.5 billion to over 40,000 independent businesses through partner providers. The new facility marks the first time Yoco is funding these advances itself at scale. Chief Executive Carsten Höltkemeyer has said the arrangement gives the company direct control over financing needs for its merchants. The firm currently serves roughly 200,000 merchants and has processed more than $15 billion in payments.

The practical uses are straightforward. A café owner can stock up before a busy weekend. A retailer can hire an extra pair of hands. A workshop can upgrade equipment or open a second location. Because the advance is tied to actual sales performance, the risk stays manageable for both the merchant and Yoco. The company reports that it has not recorded an unprofitable lending cohort since it began offering capital, including during the pandemic years.

Victory Park Capital, a Chicago-based private-credit firm that manages about $3.6 billion and has completed more than 260 investments since 2007, has run similar merchant-advance facilities with other payments companies. Its involvement signals continued international appetite for African fintech models that sit close to real economic activity.

The broader context matters. South Africa’s small and medium enterprises face a well-documented credit gap. Many never reach the formal banking system. By embedding financing inside a payments platform that merchants already use every day, Yoco reduces friction and keeps money circulating in local economies. Advances land in the same account that receives customer payments, and repayments never require a separate bank visit.

For founders and operators across the continent, the Yoco story offers a clear template: combine high-frequency transaction data with flexible, short-term capital and you create a product that feels like a natural extension of the business rather than a separate loan application. The $100 million facility will let the company serve more of its existing base and potentially deepen relationships with merchants who previously received advances through third parties.

As African economies continue to digitise retail and services, tools that turn payment flows into accessible working capital become infrastructure. Yoco’s latest step does exactly that—quietly putting usable cash into the hands of the people who run the shops, restaurants, and workshops that keep cities moving. For anyone writing about or investing in African SME finance, the combination of proven volume, merchant-friendly design, and fresh capital makes this one of the more practical positive developments of the week.