True Impact recently launched its game-changing SMME Fund to create massive impact for enterprise and supplier development. Their mission? To release R1 billion funds to 2 000 SMEs in the next three years.
The primary objective of any Enterprise and Supplier Development (ESD) initiative is to stimulate the economy and create greater diversity in large corporate supply chains. Of the many challenges that exist in the industry, True Impact has identified the need to drive transformation with real, proven and direct solutions for the market.
True Impact is challenging the status quo of fund deployment in Enterprise and Supplier Development spend by creating real impact in the market for corporates and SMMEs simultaneously. The firm has launched its SMME Fund with a high SME impact focus to introduce transformation solutions that deliver immediate benefits for corporate ESD spend.
What sets True Impact apart from other providers in the industry is that it deploys 100% of the funds directly to SMEs and charges no management fees. Corporates benefit from immediate ESD points to ensure full compliance.
“One of the challenges that we want to address in the enterprise and supplier development space is to reshape the thinking around ESD – that it is not merely a tick box exercise for compliance. Ultimately, the Codes are about more than that, which is why we’ve launched our SMME Fund. We invest corporate spend directly into small businesses through our portfolios with maximum impact for both the corporate and SMME markets,” said Siva Moodley, CEO of True Impact Fund.
With True Impact, corporate ESD is invested directly in SME development through proven structures.
“Our first order of business is to raise and deploy R100 million to a progressive short-term FinTech funder, ProfitShare Partners, over the next three years,” added Moodley.
ProfitShare Partner has already proven results in the SME sector. The funder’s innovative business model is designed to create a high growth tool for SMEs by partnering purely on the transaction, rather than acquiring equity in small businesses. As a direct result, ProfitShare Partners can partner with the same SME on numerous transactions.
“This commitment is of immense value to us. We’ve already assisted several SME clients in growing their turnover tenfold in 12 months and achieved a 97% collection rate in a market that is perceived to be high risk. We’ve grown our funding book value 400% in one year – with additional funding lines, we’re looking forward to creating an even greater impact in the SME market,” says Andrew Maren, CEO of ProfitShare Partners.
“The True Impact Fund is a major transformation solution for corporate South Africa. SMEs are in serious need of funding and the True Impact Fund will go a long way to address some of the demand. We create real impact for true transformation,” added Moodley.