S. African FinTech Sava raises $ 2 million in Pre-Seed

South African FinTech Sava has raised $ 2 million in pre-financing, which will go to the company’s business-to-business (B2B) expenses and budgeting solution, a report from Techbuild.africa said on Thursday (June 30).

The company focuses on two specific business problems: Businesses do not have the tools to manage expenses and business owners and employees spend too much time on record keeping and reconciliations.

The report said that the founders started the company due to problems they experienced in their previous businesses.

CEO Yoeal Haile says that the approach to cost management the company uses helps companies of all sizes get tools to run a financial operating system in the background.

The report noted that banks have been reluctant to lend, especially in Africa, so it is often difficult to assist and guarantee smaller companies. This has led to companies being rejected, which in turn leads to the credit gap, which has become worse every year.

Sava says that the software will integrate bank accounts, mobile wallets, payments and accounts. Haile has also said that the company intends to issue credit cards to customers’ employees.

The round sees participation from investors including Quona Capital, Breega, CRE Ventures, Ingressive Capital, RaliCap, Unicorn Growth Capital and Sherpa Ventures.

See also: Proxtera debuts financial education for MSME in Asia, Africa

There have been many efforts to help startups in Africa, including Proxtera’s work with various units on financial education programs for micro, small and medium-sized enterprises (MSMEs) in that region.

The initiative will see Proxtera join forces with the Monetary Authority of Singapore, The International Finance Corporation and the United Nations Development Program to develop new programs to build skills in financial literacy for the digital world.

According to Saurav Bhattacharyya, CEO of Proxtera, the program is “true to our mission to support MSMEs, by upgrading them to understand financial services and how to best utilize the digital marketplace effectively and globally.”