South African fintech company Yoco Technologies, backed by private equity firm TPG, has secured a $100m private credit facility from Victory Park Capital Advisors to expand financing for small businesses, according to a report by Bloomberg.

The transaction marks Yoco's first direct borrowing arrangement and will reportedly allow the company to provide working capital and cash advances to merchants using its payments platform. Financing will range from ZAR2,000 to ZAR1.5m, supporting businesses seeking to purchase inventory, expand operations or invest in equipment.

Victory Park manages approximately $3.6bn in assets and has deployed more than $12bn across 260 investments since 2007. Yoco, which has previously raised more than $150m in equity from investors including TPG and Dragoneer Investment Group, has already distributed approximately ZAR6.5bn in merchant financing through third-party partners.

Founded in 2015, Yoco currently serves approximately 200,000 merchants and has processed more than $15bn in payments. The credit facility reflects the growing role of private debt in financing African fintech companies as they seek to address gaps in traditional bank lending.