In 2022, the JSE launched an online marketplace called JSE Private Placements (JPP) which was awarded an FSP Category One License.
JPP aims to significantly improve the ease and accessibility of raising private (non-listed) funding while streamlining deal sourcing for private companies and individuals.
René Moodley, who runs the IT and Operations for the business said the marketplace was built on a Fintech platform which has published deals with a total ticket size of over R5 billion in South Africa alone.
“The qualifying criteria are simple: companies must be raising over R1 million and pass our compliance verification checks,” said Moodley.
“They can raise Equity or Debt funds, in any industry, across the African continent. Furthermore, the platform has over R12 billion worth of investor funds (from South Africa, Africa and globally).”
“Similarly, investors must pass our compliance verification checks and provide us with their mandate requirements,” said Moodley.
Many private companies are already collaborating with JPP by sending it a multitude of deals or investors, which it refers to as Aggregators. These include banks, corporate finance houses, SME incubators, advisors and more.
The reason Aggregators are turning to the JPP platform and embracing industry collaboration is that they align with JPP’s six-point mission:
- Advancing Africa – To serve and act as a joint catalyst for Africa’s economic growth by providing a single cross-border platform to raise and invest privately.
- Collaboration – JPP works with Aggregators to create a win-win-win relationship.
- Reach – Leveraging the JSE’s vast and growing connections is envisaged to become more prominent than any single entity network in South Africa.
- Open Fintech – Aggregators can choose to leverage or white-label JPP’s ecosystem. JPP’s technology stack incorporates deep analytics and intelligence to manage and match entities across the continent effectively, with mutual consent.
- Ease – JPP’s fastest Aggregator was onboarded in just two weeks.
- Cost-effective – There are no upfront costs to Aggregators as JPP only receive its fees upon matching and closing a deal, meaning it’s a zero-risk model to approved Aggregators.
How does it work for Aggregators?
“The Aggregator and JPP agree on a collaboration strategy and go through a light onboarding process,” said Moodley.
“Following that, the Aggregator or JPP may choose to share deals or investors.”
These deals go through a high-level due diligence process and are then published on the JPP marketplace, Moodley explained.
“The JPP matching engine algorithm then derives the relevant match(es). We notify the Aggregator of the potential match on a case-by-case basis, and if the Aggregator decides to proceed further, we facilitate mutual consent.”
“Following that, both entities can engage and progress to closing a deal based on their satisfied requirements,” said Moodley.
What are the benefits for Aggregators?
Aggregators have a range of options for collaborating with JPP, as provided below:
- Aggregators can utilise JPP’s technology stack.
- Aggregators can leverage JPP’s operational screening stack.
- JPP can share relevant deals with the Aggregator.
- JPP can share relevant Investors with the Aggregator.
- The Aggregator can share relevant deals with JPP.
- The Aggregator can share relevant Investors with JPP.