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A SA fintech startup wants to save employers thousands of rands in bank charges by getting them to pay their employees through a new digital wallet platform, My-iMali.
With the investment the platform aims to grow the number of users from the current 10 000 to 126 000 users within the next three years.
The campaign was launched last Thursday (12 September) and will run for another 69 days. So far the startup has raised R19 000 from four investors through the campaign.
The minimum raise amount for the startup to secure investment, is R7.5-million. Should it not reach the figure, the startup will forfeit whatever investors have pledged.
My-iMali is looking to raise R25-milion in an equity crowdfunding campaign on Uprise.Africa
“We want to upscale big time,” My-iMali co-founder Casper Kruger told Ventureburn in a call yesterday.
Kruger, who is also the CFO, launched the company with Matt Goosen who is the company’s CEO, in November last year.
Kruger said as the platform has already been fully developed and is up and running, the investment will go mostly to cover marketing costs and to increase the startup’s employee numbers, which is currently at 12 permanent staff in Centurion near Pretoria.
The startup, he claims, has so far signed up over 100 companies, some with over 500 employees, with 10 000 users presently on the platform.
‘Employers can save thousands of rands’
The platform can save business owners thousands of rands in bank charges when they make staff payments — because payments are made into a digital e-wallet, rather than via the banking system.
Kruger points to one example where the owner of a security company who used to accumulate about R3500 a month in bank charges when he paid his 250 security guards, and who is now billed just R1.25 a month by My-iMali when he pays his staff their salaries into 250 e-wallets.
There are other benefits too. Some of his staff, who didn’t have bank accounts were previously paid in cash, leaving them vulnerable to thieves once a month when they returned with their salary.
Those with e-wallets can now opt to draw the cash at any point-of-sale device in stores around the country by swiping a Mastercard debit card that is linked to their e-wallet, or they can send the money to their bank account.
Via the app, e-wallet users can also purchase services such as airtime and electricity and take part in sports betting. It’s through offering these services to users that My-iMali generates a revenue — by getting the services at a bulk discount from service providers before selling them to users on the app.
Kruger pointed out that while the startup works with employers to then sign up their employees as users, the startup is also looking to franchise the system to service providers who can then sign up other businesses, while passing on a royalty payment to My-iMali.
‘In talks on deal with Crossfin’
He said he and Goosen, as well as the company’s four other shareholders have invested R16-million of their own savings in the company, and are currently in talks with Cape Town based fintech holding company Crossfin to take a stake in the company.
“As we speak agreements are being drafted,” said Kruger.
He said My-iMali is carrying out roadshows and speaking to individual investors to invest in the campaign. Said Kruger: “We’re confident that we can reach the target”.
Featured image: My-iMali via YouTube