SweepSouth, a South African company has received an undisclosed amount in a venture capital investment from Futuregrowth.
Amrish Narrandes, Head of Unlisted Equity Transactions at Futuregrowth comments on the innovative business model and work being conducted by SweepSouth.
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“SweepSouth is an early-stage business disruptor that, instead of solving a Silicon Valley problem, is solving South African-specific problems. The company has taken a large segment of the informal sector, which is one of the biggest employers in South Africa, and formalised it, giving people protection and security in their working environments.”
SweepSouth has been characterised as a disruptive company providing employment opportunities for locals
SweepSouth stood out for Narrandes because it met all the criteria Futuregrowth has identified as necessary in early-stage companies. SweepSouth has a large addressable market in the informal sector, it is disruptive, it has a positive social impact on the economy and the management team has proven credentials in building the company to where it is now, as well as engaging in ongoing innovation.
Venture capital investments provide the funding that supports the development of these entrepreneurial engines of economic growth. Through the Futuregrowth Development Equity Fund, the investment manager makes selective venture capital investments into what it believes to be distinctive businesses and propositions that offer significant growth potential.
It’s been more than three months since South Africa went into lockdown and the cost to the economy of the sudden stop in business activities is becoming increasingly apparent. Now more than ever, South Africa needs the dynamism and growth potential, as well as employment, that early-stage innovative companies like SweepSouth have to offer.
Narrands comments on the social impact credentials of the company.
“SweepSouth has played a material role in empowering previously vulnerable informal workers by giving them a voice and the ability to control their destiny because they have flexibility and control over their own time.”
This funding comes after SweepSouth raised over R60-million in funding in 2019 (see this story )
SweepSouth
Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth has expanded from the initial domestic cleaning service to gardening and pool cleaning, heavy lifting, fixing and maintenance, and, most recently, commercial sanitation. Based in Cape Town, SweepSouht offers services in South Africa’s four metropolitan areas, namely Johannesburg, Pretoria, Durban, and Cape Town.
Expanding its scope of services to offer commercial sanitation, SweepSouth has addressed a gap in the market while simultaneously providing a solution to sanitation concerns due to the impact of Covid-19. The addition of new services provides a wide source of revenue and avenue for the future growth of the company.
In moving away from terms such as “maid” and “char”, SweepSouth provides dignified and flexible work conditions for their SweepStars.
Says Aisha Pandor, co-founder and CEO of SweepSouth explains the development behind the concept of SweepStars.
“We are uplifted each time we see our SweepStars referred to in this way, as it represents how a positive idea can take shape and can change the negative language that has been so deeply entrenched.”
SweepSouth provides work opportunities for thousands of SweepStars, 71% of whom were previously unemployed and 29% of whom were underemployed. A significant 84% of SweepStars are primary breadwinners at home, making the income they earn through the platform vital in enabling them to support their families.
Read more: Cape Town startup SweepSouth raises over R50m in new funding round
Read more: Entrepreneur-driven Venture Capital Fund E4E Africa launches in SA
Featured image: Aisha Pandor, SweepSouth founder (Supplied)
