SA startup Float
raises R46m

The card-linked instalment platform Float has secured R46-million ($2.6-million) in funding. Float says this will be used to scale South African operations, enhance its proprietary technology platform and prepare for future market expansion.

The funding was co-led by Invenfin and SAAD Investment Holdings, with participation from existing investors, including Platform Investment Partners. Lighthouse Venture Partners also participated and played an advisory role on the deal.

Float offers an instalment payment system that allows consumers to split purchases into smaller payments without charging interest or fees. The company positions the service as a budget-friendly alternative to traditional credit, aimed at improving affordability and helping cardholders manage repayments in a challenging economic environment.

The platform serves over 2,000 stores and processes thousands of high-value transactions monthly, with average order values of around R10,000 and merchants seeing over 130% increases in average order values.

“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,” says Float founder and CEO Alex Forsyth-Thompson.

“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.”

Float’s platform includes flexible instalment terms and gives merchants the option to customise and manage their instalment 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. 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.”

Float has partnerships with payment processors such as Peach Payments and Adumo, enabling processing across online, in-store, and payment link channels.

Theo van den Berg, investment executive at co-lead investor Invenfin, says: “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.”

Johann Snyman, private equity principal for SAAD, says: “At SAAD we love backing impressive entrepreneurs who are busy scaling remarkable businesses – Float ticks both these boxes for us and we’re excited for what the future holds for Alex and team.”

Since launching in November 2021, Float has built partnerships with hundreds of merchants, including iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart and MiFitness. Last year, Standard Bank provided a R200-million ($11-million) facility to Float, providing access to growth capital.