Verdant Capital Invests $2 Million to Expand SME Financing

Thursday, January 30, 2025

JOHANNESBURG, South Africa – Verdant Capital has announced the successful completion of a $2 million mezzanine investment in UsPlus Limited, a South African financial services provider specializing in working capital solutions for Small and Medium Enterprises (SMEs). The investment, structured as junior convertible debentures, marks the fifth deployment by the Verdant Capital Hybrid Fund, reinforcing UsPlus’ capacity to extend its invoice factoring services across key industries.

Since its inception in 2015, UsPlus has played a transformative role in providing essential financing to businesses historically underserved by traditional lending institutions. The company focuses on supporting enterprises that align with sustainable development objectives, particularly those owned by women and operating in critical economic sectors such as manufacturing, logistics, agriculture, and renewable energy.

By enhancing SME competitiveness, UsPlus empowers businesses to secure procurement contracts with multinational corporations, while expanding financial inclusion for firms traditionally excluded from the financial system. The Verdant Capital Hybrid Fund’s investment will bolster UsPlus’ capital base, attracting additional senior debt funding to fuel further balance sheet growth.

According to Verdant Capital, the investment aligns with the fund’s broader pan-African strategy, which prioritizes digitally enabled financial institutions serving micro, small, and medium-sized enterprises (MSMEs). The fund deploys capital through hybrid instruments, including subordinated debt, mezzanine financing, preference shares, and stapled investment structures. With a current fund size of $38 million, Verdant Capital aims to reach $100 million at Final Close in H1 2025.

This investment underscores Verdant Capital’s commitment to impact-driven finance, ensuring broad economic benefits while maintaining strong credit risk safeguards. By scaling UsPlus’ financing capabilities, this collaboration is set to strengthen South Africa’s SME sector, drive economic resilience, and foster sustainable business growth.