Float, a card-linked installment platform in South Africa, has raised US$2.6 million (R46 million) to support its growth domestically and internationally.
Float, Africa’s first card-linked installment platform, was founded in 2021. By dividing their payments into interest-free, fee-free monthly installments using their current credit, it gives consumers a more intelligent way to use their credit cards.
With participation from all current investors, including Platform Investment Partners, the startup, which last year obtained a US$11 million funding facility from Standard Bank, has raised US$2.6 million in a funding round co-led by Invenfin and SAAD Investment Holdings. In addition, Lighthouse Venture Partners took part in the transaction and provided advice.
As the business continues on its triple-digit growth trajectory, the funds will be utilized to expand Float’s operations in South Africa, improve its proprietary technology platform, and get ready for future market expansion.
With industry-leading average order values of about ZAR10,000 (US$570) and merchants experiencing average order value increases of over 130%, the platform presently serves over 2,000 stores and handles thousands of high-value transactions each month.
“This funding round represents a significant vote of confidence in our approach to responsible credit usage, our ability to deliver genuine value to both merchants and shoppers, and the international scalability of our solution. While other platforms focus on issuing new credit, we’re empowering millions of consumers to manage their existing credit better, while further unlocking a multi-trillion-dollar opportunity for merchants,” said Alex Forsyth-Thompson, founder and CEO of Float.
Float’s platform is unique because it emphasizes responsible credit use, offers much more flexible terms for installments, and gives merchants complete control over their installment offerings.
“Credit cards remain one of the best cashflow tools available to consumers when used responsibly. What sets Float apart is our focus on enabling that responsible usage while keeping the credit card as the preferred way to pay,” said Forsyth-Thompson. “By giving shoppers more flexibility and control, we help them manage their budgets and maintain strong credit records, all while merchants benefit from higher-value transactions and a more loyal customer base.”
“We’ve been very impressed with Alex, Paul Masson, CFO and COO, the Float team’s execution and ambition, and are proud to partner with them. Float has created a genuinely differentiated proposition in the South African payments landscape, with its card-linked approach addressing a clear market gap while promoting responsible credit usage. The company’s impressive market traction, combined with its experienced management team and scalable technology platform, makes this an extremely compelling investment opportunity in the fast-growing fintech sector,” said Theo van den Berg, investment executive at co-lead investor Invenfin.
