Exclusive: SA's Fintec Labs secures $2M Series B from ABSA Bank

Fintec Labs, a South African financial technology incubator, has announced the raising of 30 million Rand (~$2,064,600) from ABSA Bank.

Daniel Van Tonder, CEO and Co-Founder of Fintec Labs - a former banker and data scientist with Absa and later Barclays - told Digest Africa. He also added that this round, which closed on December 21, 2018, although they first announced it on September 1, 2018, forms their Series B.

This is the second round of funding that Fintec Labs secured in 2018. Earlier in the year, they raised a 35 million Rand (~$2.4 million) Series A from an undisclosed investor, which Daniel also confirmed.

Also read: These are our best 19 stories of the African tech ecosystem in 2018

In total, the company has raised at least $6.2 million in funding since their inception.

Fintec Labs, headquartered in Stellenbosch, describes itself as the incubator to the "largest African insurance and banking institutions". Adding that it is a "B2B technology provider to major banking and insurance enterprises in South Africa".

Its flagship product is a best-cost routing engine that gives clients the ability to collect premiums or subscriptions via the most efficient bank- or non-bank channels. Routing is done through a proprietary machine learning module that predicts the optimal outcome and implements the change in a series of action triggers.

"Fintec is an African-based innovation hub – using technology to solve real-world challenges. The businesses and products we build help banks, insurers and regulators get back in the game."

Founded in 2015, by Daniel van Tonder and Willem van Zyl, Fintec Labs is part of the larger Fintec Group. The entire group has; Fintec Spaces, Fintec Ventures and Fintec Accelerator under its umbrella. While the former incubates, the others offer co-working space, funding and acceleration in the respective order.

Digest Africa tracked 440 deals worth over $1.1 Billion (plus M&A) in 2018. Next week, our 2018 African Technology Companies Investment Report will be released for purchase at $299 (without the data) and $999 (with the data). Send us an email to research@digestafrica.com to book a copy.

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