SOUTH AFRICA – My-iMali, an e-wallet provider has launched an Uprise.Africa crowdfunding campaign in a bid to raise US$1.6 million in order to expand its business, reports Disrupt Africa.
Uprise.Africa is an innovative online platform to discover, learn and invest in local business. It started Equity Crowdfunding which is a new way to invest in SMEs
Multiple investors contribute to innovative business pitches in exchange for equity shares in the company. Raising capital alongside multiple sources reduces the investment risk. Businesses gain validation and build brand awareness through the capital raising process.
My-iMali has developed the BxChange E-Wallet App, an affordable, easy to use and convenient digital wallet that enables customers to make transfers to bank accounts, and top-up or purchase prepaid products and services.
The startup has already acquired 2,100 app users, and 35 enterprise customers. it is looking to expand by raising US$1.6 million in return for a 20 per cent stake in the company through an equity crowdfunding campaign on Uprise.Africa, which facilitates the whole investment process and enables multiple investors to support South African startups.
The minimum raise amount for the campaign is US$511,000, and the campaign runs for another 67 days. At the time of writing US$1,400 had been pledged by five investors.
Uprise.Africa, which raised an equity funding round of its own last year, achieved a major milestone this year when regtech startup secured US$2.19 million from 406 investors. Some campaigns, however, such as that run by mobility startup LÜLA, have been less successful. P2P solar leasing startup Sun Exchange is currently crowdfunding via the platform.
In Uprise.Africa, whether one is a novice or professional Investor, one can sign up on their website and choose the business they want to invest it. One upload their FICA documentation and select the amount they wish to invest, and transfer the funds.
The funds are held in a trust account until the campaign is closed. If at campaign close, the funding round is successful then the business receives the funds, one will be issued shares and they will be a shareholder of a South African business. If the campaign is not successful, then their funds will be returned to them less the bank charges or transaction fees.
My-iMali is a Mobile Wallet Solution that can be used by anybody with a smart phone or through USSD.