Fintech MortgageMarket raises US$682K funding from IDF Capital, plans expansion

SOUTH AFRICAFintech marketplace for home loans MortgageMarket, has raised US$681,765 in its latest round of funding from venture capital firm IDF Capital and now plans to expand its operations.

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.

The fintech company was co-founded in 2019 by Tim Akinnusi, a former Nedbank home loans executive and former Absa home loans managing executive.

The latest funding, which also establishes a partnership deal between MortgageMarket and IDF Capital, comes after MortgageMarket raised US$477,235 from its founders and private investors in 2019.

The company says it plans to use the funds to bolster its growth strategy and expand its brand throughout South Africa.

“We will use the funding to strengthen our operations locally, working alongside our partners and South Africa’s top six banks,” said Akinnusi, 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.”

Globally, the integration of secure technology and financial services has made significant strides in the property industry, added Akinnusi, and local customers are ready to embrace the choice, convenience, transparency, and control.

“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”

Tim Akinnusi – Co-founder, MortgageMarket

MortgageMarket said it pays a cashback of up to US$1,704 to qualifying customers who use its automated online platform to acquire a home loan and since inception, the company says it has paid out over US$34,088 in cashback to customers.

The company also developed a home loan pre-approval tech capability that gives consumers access to a free credit and affordability assessment in two minutes, helping clients shop for a property with the confidence of knowing their affordability status.

Johannesburg-based IDF Capital is a specialist entrepreneurial financing institution with over US$102.3 million assets under management.

“MortgageMarket fits well into our portfolio,” says IDF Capital CIO Dineo Skwambane.

“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. This will see interesting synergies between MortgageMarket and our other portfolio companies; the result of which will yield greater shared value to the market.”

Akinnusi points out 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 start-ups that play a significant role in building the SA economy and creating value for consumers.”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.