Verdant Capital has announced the completion of its fifth investment through the Verdant Capital Hybrid Fund, injecting $2 million in mezzanine financing into UsPlus Limited, a South African financial services provider specializing in invoice factoring.
The investment, structured as junior convertible debentures, will strengthen UsPlus' capital base, allowing it to expand its working capital solutions for SMEs across key sectors in South Africa.
Since its inception in 2015, UsPlus has played a crucial role in enhancing financial inclusion for businesses that struggle to access traditional financing. The company prioritizes funding for women-led and sustainability-focused ventures, helping local manufacturers, logistics providers, farmers, and renewable energy businesses secure the working capital needed to compete in major supply chains.
By bolstering UsPlus’ balance sheet, the Verdant Capital Hybrid Fund aims to attract additional senior debt funding, enabling further growth and impact in South Africa’s SME financing sector. The fund aligns with UsPlus’ mission of driving economic development while leveraging strong credit risk mitigants.
Verdant Capital Hybrid Fund focuses on digitally enabled financial institutions supporting MSMEs across Africa, investing in subordinated debt, mezzanine financing, preference shares, and hybrid investment structures. The $38 million fund targets a final close of $100 million in H1 2025.
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