Mukuru
Industry: Fintech
Headquarters: South Africa
Employees: 125Challenges
Mukuru struggled with:
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Complex financial and procurement management
As the company expanded, managing finance and procurement across multiple countries with different rules and regulations became increasingly complex.
Manual inefficiencies
Manual processes were inefficient for remote work and frequent travel requirements to areas with limited internet connectivity.
Lack of control
Requisition to purchase order processes were disconnected, causing inefficiencies and difficulties in managing spending across countries and currencies, which impacted financial control and decision-making.
AP delays and overpayment
Manual, email-based invoice approval system led to late approvals, duplicate payments, and reputational risks due to delayed payments. The process was inefficient, requiring bookkeepers to upload thousands of invoices across multiple systems for approval, which was not scalable or effective for managing the complexities of a multinational organization.
Inadequate reporting capabilities
ERP system was unable to handle the high volume and complexity of transactions across twenty-five countries, limiting their reporting capabilities.
Slow expense reimbursement
Staff had to pre-fund trips and submit expense requests via email, leading to multiple manual invoice payments and delayed reimbursements. This created inefficiencies and administrative challenges.
Financial risks
Risks and complexities in managing cash-based transactions in countries with cash-driven business models.
Lack of control and overspending on travel
Uncontrolled travel bookings and high travel costs due to a decentralized process. Employees were booking travel without proper oversight, resulting in unnecessary and excessive spending.
Solutions
With Fraxion, Mukuru has gained:
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A successful deployment in their South African entity, which led to an expanded rollout to their largest entity, Zimbabwe. Following this success, the company implemented Fraxion across all 25 countries.
A streamlined procurement process, connecting requisitions, purchase orders, invoices, and approvals. It introduced decentralized approvals, allowing managers to set spending limits by country and currency and gain financial control.
The mobile app enables easy approvals and expense claims, ideal for a team with frequent travel and remote work, with accessibility even in areas of low connectivity.
A simplified invoice management process that allows requesters to upload invoices directly into the system for approval. This streamlined workflow has improved efficiency and control across the organization.
Enhanced reporting and the introduction of advanced features like supplier diversity reporting and real-time transaction tracking.
Automated expense management streamlines processes, reducing manual tasks and speeding up reimbursements. Bookkeepers can now generate CSV reports with banking details, which are efficiently processed for payment.
Over 50% reduction in travel expenditure via pre-approval processes and booking oversight. This strategic approach enhanced control over travel costs and optimized spending across the organization.
Cash advance functionality has enabled pre-approval of spending and reconciliation of cash with receipts post-trip. This approach has significantly reduced risk.
Risk management and control functions have been key in ensuring accuracy, preventing discrepancies, and supporting successful audits with PwC.
Improved collaboration between teams.
