The South African fintech firm My-iMali attempted to crowdfund a minimum of 7.5 million Rand (1 Rand = $0.068) up to a maximum of R25 million for a 20% equity piece on the crowdfunding platform UpriseAfrica.
My-iMali is an app that permits businesses to save thousands of rands in bank fees by depositing employee pay on the digital app instead of using a traditional direct bank deposit. The employee then uses a debit card to utilize the money.
The firm’s crowdfunding failure was apparently due to the fact that it was, at the same time, trying to negotiate a deal with a venture capital firm.
In the end, the VC deal was struck – terms were not disclosed.
So, the crowdfunding attempt may not have raised the cash but did provide some publicity for the firm. However, it’s likely that the valuation agreed with the VC was, shall we say, less rich than what the public was being offered.
So, there is life after crowdfunding failure, even if it’s not as lucrative as one would have hoped.