AlphaCode incubation programme opens applications for fintech whizzes

Fintech incubation programme AlphaCode has opened for applications from innovative entrepreneurs in financial and related industries who are already involved with in a fantastic early-stage fintech project or who have a brilliant idea for one and just need some assistance.

The AlphaCode Incubate programme was established to identify, partner with and grow entrepreneurs, and entrepreneurs with innovative business concepts led by strong entrepreneurial teams can apply before 31 October 2021 to stand a chance to benefit from a R1.5 million package.

The programme offers funding and guidance from experienced mentors and a panel of advisory experts, as well as access to AlphaCode’s co-working space. Over the past six years, the programme has disbursed R33.5 million in funding to 41 black-owned financial services businesses.

AlphaCode is the Rand Merchant Investment Holding (RMI) incubation, acceleration and investment vehicle that identifies, partners and grows early-stage financial service ventures.

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Success stories

MatchKit and OysterPay were part of the previous AlphaCode Incubate intake and are already making waves in their industries. MatchKit helps athletes better commercialise their careers and broke ground in 14 countries and 22 sporting codes with contracts with, for example, the South American Rugby Association and USA Swimming.

It has also attracted athletes with a combined social reach of 7.2 million fans, whose MatchKit profiles have been viewed 130,000 times.

“AlphaCode armed us with the skills to refine our approach and sharpen our focus. We are aiming for 10x revenue growth year on year thanks to the programme, our mentor and our peers,” Mike Sharman from MatchKit says.

OysterPay makes it easier for gig workers to get paid, save and access credit and also saw tremendous growth, scaling beyond the pilot customer which initially focused on e-commerce delivery drivers at Takealot and now servicing gig workers working for mobility platforms such as Uber and food delivery platforms, such as Checkers Sixty60.

“We grew our user base by more than 200% in the last 10 months and doubled the number of regions that we service. Leveraging the AlphaCode branding, we are now piloting with gig economy marketplaces to have gig workers paid directly into the OysterPay prepaid debit card to facilitate faster payouts,” Scelo Makhathini, founder of OysterPay says.

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The fintech incubation programme

The incubation programme consists of two phases. During the first phase, eight businesses are selected to participate in a 12-week intensive pre-incubation programme and each business will receive R150,000 in grant funding. The pre-incubation programme focuses on how to achieve a viable business model and culminates in a demo day where participants compete for a place in the six-month step-up programme.

During the second phase, four businesses are chosen for the six-month intensive incubation programme, which focuses on establishing product-market fit and financial viability, with each participant receiving R500,000 grant funding.

Participants can also apply for seed capital from AlphaCode’s new seed fund, which invests in pre-seed and seed-stage startups.

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Fintech success in 2021

The programme for 2021 was run completely remotely due to the pandemic.

“Despite the psychological, financial and health challenges we faced during the pandemic, there has been incredible camaraderie and traction achieved among the selected startups,” Amina Patterson, head of incubation at AlphaCode, says.

Some of the success metrics from the ten businesses that participated in 2021 are that six out of the 10 participants now have revenue-generating startups, with 55.7% revenue growth, around R60,000 average monthly recurring revenue across the businesses and more than 45 jobs created.

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Finding the next generation of successful fintech ventrues

“AlphaCode Incubate is looking for exceptional entrepreneurial teams, with the grit to run with an early-stage business or idea that is differentiated and compelling. We need entrepreneurs who can navigate the challenges of a startup to reach success.

“It is our mission is to support disruptive, early-stage businesses with pioneering ideas to make a meaningful impact in the financial services industry as we hope to find South Africa’s next generation of successful financial services ventures,” Patterson says.

Fintechs can apply for the next programme which starts on 17 January 2022 on the AlphaCode Incubate website.