South African home loans marketplace MortgageMarket has raised ZAR10 million (US$687,000) in funding to expand across the country.
Founded in 2019, MortgageMarket is a customer-centric online platform that harnesses technology and customer service to allow users to compare home loan offers from South Africa’s top six banks within 48 hours.
It is now embarking on an expansion strategy after securing investment from venture capital firm IDF Capital. The ZAR10 million raise comes after MortgageMarket raised ZAR7 million (US$481,000) from its founders and private investors in 2019.
“We will use the funding to strengthen our operations locally, working alongside our partners and SA’s top six banks,” said Tim Akinnusi, chief executive officer (CEO) of MortgageMarket.
“Our platform caters for customers from all corners of the country with no immediate plans to expand internationally. We’re committed to working tirelessly for our customers, growing our team and building out our technology to provide them with the best possible experience when pursuing home ownership.”
IDF Capital chief investment officer (CIO) Dineo Skwambane said MortgageMarket fitted well into the firm’s portfolio.
“The company has exhibited strong traction to date, in addition to developing a healthy sales pipeline and business partnerships. Importantly, we are jointly executing our value creation strategy with MortgageMarket,” she said. “This will see interesting synergies between MortgageMarket and our other portfolio companies; the result of which will yield greater shared value to the market.”
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Akinnusi said his company has always wanted to partner with an investment firm that understands how to unlock value beyond capital injection.
“The fit with IDF’s mission was instant; they have a credible track record of investing and building South African startups that play a significant role in building the South African economy and creating value for consumers,” he said.