ImpactAlpha, May 8 – A majority of South Africans have access to formal financial services, but the variety of services for low-income South Africans is limited. Nobuntu is a fintech firm that launched in 2017 to build out the range of affordable financial and insurance products available to low-income consumers.
The company offers two products: funeral insurance and a peer-to-peer retirement savings plan, called The People’s Fund. “The traditional cost structure makes existing products expensive, complicated and only available to wealthier people,” Nobuntu founder Tyron Fouche told Africa Digest.
The undisclosed investment from fintech holding company Crossfin will support Nobuntu’s market reach, including giving the company access to 9,000 retailers and 13,500 mobile merchants in seven African countries.