TLcom Capital leads seed investment in LittleFish, a South African fintech startup on a mission to reconnect banks with Africa’s small and medium-sized enterprises (SMEs). They have closed its seed investment round led by TLcom Capital, with Flourish Ventures as a co-investor.
This development marks the first investment in South Africa for the firm, which historically focused on East and West African markets but is now expanding into the southern region of the continent.
The funding will enable the company to accelerate its work of empowering banks to leverage the growing reach of fintechs to efficiently serve SMEs in the Southern African nation.
For TLcom, the investment in LittleFish is seen as a strategic move to tap into South Africa’s growing fintech sector, which has attracted increasing attention from global investors. The venture capital (VC) firm’s entry into South Africa is part of its broader strategy to diversify its investment portfolio across Africa’s key markets.
In April 2024, the Africa-focused VC firm announced the final close of TIDE Africa Fund II, a $154 million fund for seed and Series A startups on the continent.
With over $300 million in assets under management, the firm has previously invested in more than 15 high-profile startups across Nigeria, Kenya, and Egypt, including Andela, Twiga Foods, and Kobo360.
About LittleFish
LittleFish, co-founded in 2021 by Brandon Roberts and Miod Davith Kahwa, aims to bridge the financial services gap for the more than 80 million SMEs across Africa.
The fintech company provides a comprehensive digital platform that enables banks, insurers, fintechs, and other financial institutions to better serve SMEs.
Through partnerships with these institutions, LittleFish offers solutions such as streamlining financial operations, digital payment processing, and access to credit. This model allows banks to retain their SME clients while providing more agile and customer-focused services.
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Africa is home to more than 80 million SMEs, which are key drivers of employment and economic activity across the continent. However, many of these businesses remain underserved by traditional banks and fintech firms, often lacking access to financial services that address their specific needs.
Littlefish’s CEO and co-founder, Roberts, aimed to change that by offering a tailored platform with better necessary financial tools designed to meet the unique demands of the SME sector.
Roberts’ background in enterprise software and his deep understanding of the African fintech landscape were key factors that attracted TLcom Capital to back the startup.
TLcom noted that LittleFish’s vision and strong execution capabilities were crucial to their investment decision.
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