South African fintech company Floatpays raises $4m seed funding
South African on-demand pay provider, Floatpays – a fintech that helps employees build financial wellness and provides a solution to employers looking to enhance their employee value proposition – announced that it has secured just under $4 million in an oversubscribed seed funding round.
Since launch, despite the set-back of Covid-19, Floatpays has roughly tripled its employer base and grew its user base by 24x. The funding is a crucial foundation for the next phase of Floatpay’s growth, and was collectively backed by investors including Global Founders Capital, Base Capital, Finca Ventures, Raba Partnership and 4DX Ventures.
“We are witnessing the potential technology has in offering fair and transparent financial services products. Floatpays is a leader in the earned wage space and on their way to building the leading trusted brand across the continent. We are excited to partner with Simon and team in supporting Floatpay’s mission in becoming the financial services platform of choice for Africa’s large and growing workforce,” says George Rzepecki, founder of Raba.
“The investment allows us to consolidate our position in South Africa and expand into the rest of Africa. We are accelerating the development of important features that complement our existing product, such as our new interest bearing savings account that is directly linked to employees’ paycheques,” says Simon Ward, founder of Floatpays.
According to Ward, Floatpays was established as a “small company with big dreams to create a financially inclusive Africa.” As he explains, “I launched Floatpays as a social impact-driven business on a mission to help move employees out of bad debt cycles and into savings and long term financial wellness.
”Our mission is to educate employees on better personal finance management, support them with financial planning and saving, and give them an alternative to payday lenders/high-interest credit solutions when mid-pay cycle liquidity becomes a problem.”
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