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Franc secures R8 million for app expansion

by TINTSWALO BALOYI
JOHANNESBURG – FRANC, the investment app, has announced its business-to-business (B2B) offering after securing capital injection to the tune of R8 million (over US$522 000).

Franc Business has been introduced following the seed extension raise, which included investment from pan-Africa focused venture capital firm, 4DX Ventures.

The capital injection will in part fund their B2B initiative aimed at businesses who want to entrench customer loyalty and their value proposition with a ‘plug and play’ investment and savings offering.

Actuary Sebastian Patel, and engineer, Thomas Brennan, who were university mates, launched Franc in 2017 after frustration by the complexity and high barrier to entry of existing investment offerings.

The duo were also concerned by the poor rate of investment among South Africans (less than 8 percent) outside of retirement products.

Franc does not impose investment minimums on users but they can invest as much as they want, whenever, conveniently through their mobile application.

“With Franc, consumers can start investing within minutes of downloading the app, and can, if needed, extract their funds within a few days of requesting a withdrawal through the app,” said Brennan.

He is also Franc’s Chief Executive Officer (CEO).

Brennan noted despite the headwinds of COVID-19, many South Africans, from students to doctors, had taken to the app as a first foray into investments and savings.

In 2021, customer growth was over 400 percent.

Franc Business will enable companies to offer quality investment products to their own customers using Franc’s technology and license.

“The advantage of Franc Business is its simplicity and low cost” said Patel.

He is the Franc’s Chief Operations Officer (COO).

“Franc Business clients can help their customers to start saving or investing immediately, boosting loyalty and value for the business, without the hassle of regulatory red tape and lengthy technical development,” said Patel.

Franc’s simplicity is enhanced by limiting investment choices to just two funds – the Allan Gray Money Market and the Satrix Top 40 ETF.

“We’re passionate about expanding the opportunity for everyone to save and invest, as it’s a critical component of being able to build wealth over time,” Peter Orth, Managing Partner, 4DX Ventures, said.

– CAJ News

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