The educational technology (EdTech) sector in South Africa is undergoing a profound transformation. With a young, digitally-savvy population and a pressing need to address longstanding educational inequalities, innovators are stepping up to create solutions that are both effective and accessible. However, a significant obstacle for many of these promising ventures is securing the necessary funding to scale their operations and reach a wider audience.
While many in the EdTech space are familiar with Fundi’s core business as a provider of student loans and bursary administration services, a common question arises: Can Fundi support EdTech startups with grants? The answer is not a simple “yes” or “no,” but rather lies in understanding Fundi’s unique position within the South African education ecosystem and the various avenues through which it contributes to educational advancement, which can indirectly benefit the wider EdTech community.
How Fundi Can Support EdTech Startups With Grants and Other Funding Avenues
While Fundi’s primary business model focuses on student financial solutions, its influence and partnerships within the South African education sector create distinct opportunities for EdTech startups to find support. It is important to distinguish between a direct, dedicated grant program from Fundi specifically for EdTech startups, and the broader ways in which the company’s initiatives can lead to grant opportunities or other forms of collaboration.
Fundi’s Bursary Management solution, for example, is a key piece of this puzzle. By partnering with corporations, government departments, and other organizations to manage their bursary funds, Fundi facilitates the flow of capital into the education space. These funds are often directed toward institutions and students, but the solutions that enhance the efficiency and impact of these bursaries—such as EdTech platforms—are inherently valuable to Fundi and its partners.
For an EdTech startup, this means that while Fundi might not have a public-facing grant application for new ventures, a strategic partnership could open doors to funding. An EdTech platform that helps bursary students manage their finances, track their academic progress, or access crucial learning materials could be a perfect fit for a corporate social investment (CSI) program managed by Fundi. In such a scenario, the startup might receive funding, not as a direct grant from Fundi itself, but as a result of Fundi introducing and vouching for the technology to one of its corporate clients seeking innovative ways to deploy their CSI budget. This form of indirect support is a powerful alternative to traditional grants, offering both capital and a valuable commercial partnership.
The company’s positive brand presence and extensive network can also act as a catalyst for other funding avenues. Fundi’s long-standing reputation as a trusted financial services provider in the education sector makes it a credible partner. An EdTech startup that can secure a pilot project or a letter of intent from Fundi can leverage that endorsement when applying for grants from other organizations, venture capital firms, or even government initiatives. Fundi’s involvement signals that the startup’s solution is relevant, reliable, and has the potential to create real impact on the ground.
Unpacking the Broader EdTech Funding Landscape in South Africa
For EdTech startups, it is crucial to look beyond a single entity like Fundi and understand the full spectrum of funding available in South Africa in 2025. This comprehensive view helps entrepreneurs develop a robust and diversified funding strategy. Grants, while highly sought-after because they do not require a stake in the company, are just one piece of the puzzle.
- Venture Capital and Angel Investors: This is a major source of capital for high-growth, scalable EdTech businesses. Investors such as Knife Capital, Naspers Foundry, and others are actively looking for innovative solutions that can disrupt the education sector. These firms typically provide significant capital in exchange for equity, and they often bring valuable business development expertise and networks to the table. The focus is on a clear business model with a path to profitability, as opposed to a purely philanthropic approach.
- Corporate Social Investment (CSI) and Foundations: Many large South African corporations have dedicated CSI budgets aimed at uplifting communities, with education being a primary focus. Companies like Vodacom and Standard Bank, among others, run their own educational initiatives and often collaborate with technology partners to maximize their impact. These programs can offer a form of grant funding, typically tied to specific social impact metrics.
- Accelerator and Incubator Programs: These programs, often run by organizations like Injini, provide more than just capital. They offer mentorship, networking opportunities, and structured support to help startups refine their products and business models. Programs like the Mastercard Foundation EdTech Fellowship, in partnership with Injini, are prime examples. They offer equity-free funding and extensive resources, making them a highly attractive option for early-stage and growth-stage ventures.
- Government Grants and Funding Initiatives: The South African government, through various departments and agencies, has a vested interest in promoting technology-driven education. While direct, specific grants for EdTech startups can be rare, funding can be found through broader initiatives aimed at technology innovation or small business development. Startups should research programs from the Technology Innovation Agency (TIA) or other similar government-backed entities.
- International Grants and Competitions: EdTech is a global field. South African startups can compete in international grant programs and competitions, such as the Global EdTech Startup Awards. These platforms not only offer financial prizes but also provide international exposure and validation, which can lead to further funding opportunities.
By exploring these varied avenues, an EdTech startup can move away from a reliance on a single source of funding and build a more resilient financial foundation. The key is to demonstrate a clear value proposition, a well-defined business model, and a scalable solution that addresses a real need in the market.
The Synergy Between Fundi’s Bursary Management and EdTech Solutions
To truly understand Can Fundi support EdTech startups with grants, it is helpful to look at how their core business could naturally intersect with and benefit from technology. Fundi’s Bursary Management solution is a service designed to streamline the administration of educational funds for its corporate and government clients. This involves everything from vetting applications and disbursing funds to monitoring student progress and ensuring accountability. This entire process is ripe for technological enhancement.
An EdTech startup that develops a solution to improve any part of this value chain could present a compelling partnership case to Fundi. For instance, a platform that uses artificial intelligence to help process bursary applications more efficiently could save Fundi’s clients significant time and resources. A solution that provides real-time analytics on student performance and engagement could help bursars better track the return on their investment. A digital wallet or a payment system designed specifically for students to manage their allocated funds could enhance transparency and reduce misuse of funds.
Fundi, in its role as a technology-driven financial solutions provider, is always seeking ways to improve its service offering. A partnership with an innovative EdTech startup could be mutually beneficial. The startup gains a major client and potentially a new source of revenue, while Fundi strengthens its market position by offering a more robust and modern bursary management solution. While such an arrangement may not be a traditional grant, it is a form of significant financial support that is often more valuable and sustainable than a one-off grant. It is a commercial agreement that provides recurring revenue and proof of concept, which are critical for long-term growth.
This synergy highlights that the question is not just about a simple grant, but about strategic alignment. EdTech startups that can solve a tangible problem for Fundi or its clients are in a strong position to secure a partnership that includes financial support. They should focus on developing solutions that are not just “nice to have,” but are essential to making the education funding process more efficient, transparent, and impactful.
Building a Sustainable EdTech Venture: Beyond the Grant
For any startup, and particularly those in the EdTech sector, relying solely on grants can be a risky and unsustainable strategy. Grants are often tied to specific project outcomes, have rigid reporting requirements, and are not designed to provide long-term operational capital. A successful and enduring EdTech company needs a diversified and sustainable business model.
A key part of this is generating revenue. This can come from a variety of sources:
- B2B (Business-to-Business) Sales: Selling a platform or solution directly to schools, universities, or corporate training departments.
- B2C (Business-to-Consumer) Subscriptions: Offering a learning platform directly to students or parents on a subscription basis.
- Freemium Models: Providing a basic version of a service for free to attract a large user base, and then charging for premium features.
- Partnerships and Licensing: Licensing technology to other companies or collaborating on joint ventures.
Grants can be an excellent way to get a project off the ground, conduct a pilot, or develop a minimum viable product. They can provide the initial runway needed to test an idea and prove its viability. However, once that proof of concept is established, the focus must shift to building a profitable enterprise.
In the context of Fundi, an EdTech startup could use a grant from a different source—for example, an accelerator program or a foundation—to build a solution that addresses a challenge in bursary management. Once the solution is proven, they can then approach Fundi with a a commercial proposal. This strategic approach turns the grant into a stepping stone, a means to an end, rather than the ultimate goal. This professional path is more likely to lead to a scalable and sustainable business.
The EdTech market in South Africa is robust, but it is also competitive. Success requires a combination of an innovative product, a deep understanding of the local market, and a sound financial strategy. Entrepreneurs who focus on building a strong business, rather than just chasing grants, are the ones most likely to succeed in the long run.
Conclusion: A Clear Path Forward for EdTech Startups
The question of Can Fundi support EdTech startups with grants? leads to a more nuanced and encouraging answer than a simple yes or no. While Fundi does not appear to have a direct, publicly advertised grant program for EdTech startups, its central role in managing educational funds provides a powerful avenue for indirect support and strategic partnerships. The company’s focus on technology-driven financial solutions for students and bursars means that it is inherently interested in innovative platforms that can improve the efficiency and impact of its services.
For an EdTech startup in South Africa in 2025, the most effective approach is to view Fundi not just as a potential source of a grant, but as a strategic partner and a major client. By developing solutions that address the specific challenges faced by Fundi and its corporate and government clients—such as improving bursary administration, enhancing student support, or providing real-time data on learning outcomes—a startup can present a compelling business case for collaboration. This could result in a commercial contract, a pilot project, or even a form of co-investment that provides more stable and long-term financial support than a traditional grant.
The broader EdTech funding landscape in South Africa is dynamic and offers a variety of options, from venture capital to corporate social investment programs and international competitions. A successful EdTech venture will leverage a combination of these resources, using grants for initial development and proof of concept, and then transitioning to a sustainable, revenue-generating model. By doing so, they can not only secure the funding they need but also build a resilient and impactful business that contributes meaningfully to the future of education in South Africa.