SA-Based Verdant Capital Backs UsPlus with $2M to Expand SME Financing

Edmund Higenbottam, Verdant Capital Managing Director

Verdant Capital Hybrid Fund has announced a USD 2 million mezzanine investment in South African fintech firm UsPlus Limited. The investment, structured as junior convertible debentures, is aimed at expanding UsPlus’ working capital solutions for SMEs across key economic sectors.

UsPlus, a key player in invoice factoring, has been instrumental in supporting South African businesses that have historically struggled to access traditional financing. Since its inception in 2015, the company has prioritized funding women-led and sustainable enterprises, aligning with its broader developmental agenda.

With a strong focus on local manufacturers, logistics providers, renewable energy firms, and agricultural businesses, UsPlus helps SMEs meet procurement demands from multinational corporations while enhancing financial inclusion. 

The latest funding injection will bolster its capital base and attract additional senior debt, further strengthening its capacity to support economic growth.

Verdant Capital Hybrid Fund, with a current size of USD 38 million and a target of USD 100 million by mid-2025, is dedicated to investing in digitally enabled financial institutions that cater to MSMEs across Africa. 

The fund specializes in hybrid capital instruments, including subordinated debt and mezzanine financing, ensuring maximum societal impact while mitigating credit risk. 

Source: Efficacy News