SendSpend, an app that lets users without bank accounts or cards send and receive money, has officially launched in South Africa. The payment solution…
*Correction (16 March 2020): In its initial press statement Endeavor SA said the 4600 jobs were created between 2017 and 2019. To be precise it was between 31 December 2017 and 31 December 2019 – namely two years, and not three. We have corrected the headline and article to account for this.
Twenty six companies supported by Endeavor South Africa — the local chapter of non-profit organisation Endeavor, which helps high-impact entrepreneurs — were together able to create over 4650 new jobs in 2018 and 2019.
Endeavor SA said in a statement earlier this month that the 26 companies — which include tech startups such SweepSouth, Clickatell, Entersekt, Ozow and Pargo — saw a 29% annual growth in headcount during this three-year period.
Of the 4650 jobs created, about 2100 were created in 2018, with about 2500 having been created last year, said Endeavor.
At the end of 2019, all the businesses combined employed a total of 11 670 people.
‘Impressive R11.5bn revenue’
In addition, Endeavor SA said the 26 companies in its portfolio generated an “impressive” R11.5-billion of revenue in the period from 2017 to 2019, with R4.7-billion being amassed in 2019 alone.
Endeavor SA says the 26 companies saw a 29% annual growth in headcount between 2017 and 2019
This equates to an average annual revenue of between R200-million and R220-million per business and an annual revenue growth of 27% per annum – an achievement that is particularly impressive in light of the SA economy growing at 1%.
Smaller businesses in the group (with turnover of below R50-million) enjoyed 41% growth per annum, while medium-sized businesses (with turnover between R50-million to R500-million) experienced growth in excess of 35%.
Larger businesses (with a turnover of R500-million or more) saw growth exceeding 21%. Fast-scaling tech players within the cohort have grown their revenue by approximately 47% year-on-year.
Additionally, four companies — Flexclub, Pargo, Retail Engage and Wyzetalk — delivered annual growth, ranging from 73% to 186%, in 2018 and 2019.
Over R1.4bn in capital raised
In addition, over the past three years, 70% of these businesses have successfully raised capital to the value of over R1.4-billion.
Most recently, in January, Skynamo successfully raised $30-million led by US- based Venture Capital firm, Five Elms Capital.
Endeavor SA pointed out that over 20% of the firms in its portfolio are led by black founders. Over 25% are led by female entrepreneurs.
Endeavor SA opened its offices in 2004 and has since been supporting long-term economic growth and job creation by selecting, mentoring, and accelerating the best high-impact entrepreneurs South Africa has to offer.
Endeavor SA managing director Alison Collier (pictured above) said the 26 entrepreneurs range from SaaS, fintech and education, to retail and healthcare and are involved in “disrupting the local market for the better and driving significant social impact”.
“By selecting, mentoring, and accelerating the best high-impact entrepreneurs in SA, we are maximising job creation, driving long-term economic growth as well as cultivating rising leaders and role models,” said Collier.
The 26 SA companies include SweepSouth, Clickatell, Entersekt, Ozow, Pargo, Skynamo, FlexClub, Spark Schools, Merchant Capital, Retail Engage, Clevva, Sancreed, BrandsEye, ArcAqua, Hello Paisa, CallForce, Wyzetalk; GO1, ITSI, inQuba, InnoVent, GreatSoft, Masana, IsoMetrix Software Solutions, Saryx and The Training Room Online.
Read more: How Endeavor plans to make social impact by backing high-growth entrepreneurs [Q&A]
Read more: Endeavor selects eight African entrepreneurs to join organisation
Read more: Endeavor welcomes startup Pargo and engineering group to its network
Read more: Endeavor SA welcomes former Outsurance CEO as new board member
Read more: Skynamo’s Sam Clarke selected as an Endeavor Entrepreneur
Read more: Here are the four South Africans joining Endeavor’s Entrepreneur programme
Read more: Joburg health platform Guidepost one of 20 new companies Endeavor to boost
Read more: This is how Entersekt secured Endeavor Catalyst funding
Featured image: Endeavor SA managing director Alison Collier (Supplied)