Ndaedzo Madume, once a banker, might have created one of the most useful financial services product suites for South Africans who cannot afford to own or would just rather rent homes.
Home renters can now use a product which ensures that their deposits are correctly managed.
Madume and his partners have launched GraceNineteen, a company which offers a suite of financial products accessible through the internet. Madume and his partners founded GraceNineteen in 2021 and have have attracted attention since then. They first raised R1.6m with the help of their family members. The momentum has continued and in 2023, with R3.3m raised from angel investors including Property 24. The company’s first product is a deposit investment product, which was launched in May 2023.
Madume is confident that Grace will become a sustainable and profitable business given the positive responses he has received from investors and users so far. He previously spent seven years in investment banking, starting his career in the field in 2015 on the derivatives underwriting desk.
“I did that for about 2.5 years and for the rest of my banking career I worked as a market risk analyst with key focus on banking regulations,” he says.
“GraceNineteen is poised to disrupt the residential rental property market in South Africa through the delivery of a platform combining financial products and critical tools for both landlords and tenants,” he says.
The group has three products in its suite. They are the Rental Deposit Investment Product which has been launched and is being improved as its used and the Rental Deposit Lending Product and Future Home Buyer Product, which are at a development stage.
The deposit product offers custodial services for rental deposits. GraceNineteen invests rental deposits on behalf of landlords and tenants.
“With this product, we give tenants an opportunity to create their own rental deposit investment accounts using our digital platform and this protects them against no deposit refunds, delayed deposit refunds, inadequate interest earned on their rental deposits and unfair deductions on their rental deposits. This product also helps tenants to view their rental deposits as part of their investment portfolio,” Madume says.
He says GraceNineteen aims to provide a platform that combines financial products and critical digital tools for both landlords and tenant.
“We assist tenants to begin their property rental journey and to support them in their journey of becoming first time homeowners. For landlords, we aim to support them with our financial products to add to their efficiency and compliance in the management of their rental properties,” he says.