Covid-19 and African tech startups roundup [21/04/2020]

SA fintech startup Yoco has launched a number of online payment solutions for merchants to manage their cash flow during the Covid-19 period.

This, as a new survey by Startup Genome has revealed that 42% of startups globally have three months or fewer of cash left to survive on.

With the coronavirus (Covid-19) headlining news all over the world, Ventureburn has launched a regular daily roundup on the virus and how it is affecting Africa’s tech startup sector.

Those with any news releases relating to Covid-19 and Africa’s tech startup sector can send these to editor@memeburn.com.

SA’s Yoco has launched a number of online payment solutions for merchants to manage their cash flow

Here then is the latest on the coronavirus and African tech startups:

NYDA launches relief fund: South Africa’s National Youth Development Agency (NYDA) has launched the Youth Micro Enterprises Relief Fund (YMERF) aimed at assisting youth-owned enterprises, which might not qualify for other funds, the government’s news agency SAnews reported in an article yesterday. Funding will be capped at R10 000 for every qualifying business.

R1.1bn in UIF benefits paid: The Department of Employment and Labour yesterday said it had paid a cumulative R1.1-billion to beneficiaries of the Unemployment Insurance Fund (UIF), from April 16 to date, Business Report said in an article yesterday.

Payment solutions for small businesses: SA fintech startup Yoco has launched a number of online payment solutions for merchants to manage their cash flow during the Covid-19 period, Disrupt Africa reported in an article yesterday. The three new payment solutions for its customers – Payment Page, Gift Vouchers, and Payment Request. All three are aimed at small businesses. Yoco CEO and co-founder Katlego Maphai (pictured above) said the new solutions are in response to a decline in in-person transactions, which are down 90% since the country’s lockdown began last month.

Platform to helps spazas connect to customers: Johannesburg based startup and website builder Redshift has launched its Local Store Connector platform to help connect consumers to spaza shops during the Covid-19 period. Spaza shops will have the opportunity to list themselves and accept orders from shoppers. The startup was founded last month by Mmabatho Mokiti, John McDonald and Doug Hoseck. Mokiti said the three have invested R30 000 in the platform so far as well as some seed funding to market the platform from a non-profit FinMark Trust. Mokiti said the startup will in future generate revenue from retailers that want to have their own site developed by the startup. So far, 83 stores have registered and a further 1000 will be added in the course of this week.

Running out of runway: A new survey by Startup Genome has revealed that 42% of startups globally have three months or fewer of cash left to survive on. This number is up from 31% in December 2019. Of startups that had a term sheet before the onset of the crisis, 20% have had the term sheet cancelled by the investor, and 55% have had the process slow down significantly. Only 25% have had the process continue on normally or have gotten the funds. Startup Genome expects to present its full report on how Covid-19 is affecting startup, in due course.

Read more: Covid-19 and African tech startups roundup [20/04/2020]

Featured image: Yoco CEO and co-founder Katlego Maphai (Facebook)