South African fintech startup Float raises $2.6m
Float has secured $2.6 million in funding co-led by Invenfin and SAAD Investment Holdings.
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South African fintech platform Float has secured $2.6 million in funding co-led by Invenfin and SAAD Investment Holdings, with participation from all existing investors, including Platform Investment Partners. Lighthouse Venture Partners also participated and played an advisory role on the deal.
Float lets shoppers spread large credit card purchases into as many as 24 monthly instalments, without interest, using their existing credit limit. The platform currently serves over 2,000 stores.
Alex Forsyth-Thompson, founder and CEO of Float, said: "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."
"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," added 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."
Theo van den Berg, investment executive at Invenfin, commented: “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 commented: “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 its launch in November 2021, Float has partnered with retailers including iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart and MiFitness.
Standard Bank extended an $11 million facility to the company last year, giving it access to growth capital.
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