Float, a South African Buy Now Pay Later (BNPL) fintech startup, has secured $2.6 million (R46 million) in fresh funding.
The funding was co-led by Invenfin and SAAD Investment Holdings, with participation from existing investors which include Platform Investment Partners, and Lighthouse Ventures Partners.
The funding will used to scale Float’s South African operations, enhance its proprietary technology platform and prepare for future market expansion as the company continues its growth trajectory.
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Speaking on the funds raised, 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 are empowering millions of consumers to manage their existing credit better, while further unlocking a multi-trillion dollar opportunity for merchants”.
Also commenting, Johann Snyman, Private Equity Principal for SAAD said,
“At SAAD we love backing impressive entrepreneurs who are busy scaling remarkable businesses. Float ticks both these boxes for us and we are excited for what the future holds for Alex and the team”.
Launched in 2021, Float positions itself as Africa’s first card-linked installment platform. The startup believes in a world where credit works for shoppers and not against them. It offers shoppers a smart way to pay with credit card by splitting big purchases over up to 24 interest-free monthly instalments using their available credit limit.
At the same time, Float Merchants enjoy more than 134% bigger orders and radically improved conversions. They also get direct access to 5 million pre-approved shoppers. Notably, Float instalment offering is customizable, giving merchants more control and flexibility than ever before. This is all made possible by Float’s innovative technology, built on what is called “head-in-the-sky, feet on the ground thinking”.
Since its launch, the Cape Town-based BNPL startup has seen significant traction. The platform now serves nearly 2,000 retail partners across South Africa. These include household names such as iStore, Samsung, Cape Union Mart, and Dial-a-Bed. For merchants, the model has proven highly effective, with average order values sitting at around R10,000 and basket sizes increasing by more than 130%.
The company’s strategy also builds on previous financial backing. In March 2024, Float secured an $11 million (ZAR 200 million) receivables financing facility from Standard Bank. That facility enabled the startup to expand its merchant reach and scale its card-linked installment offering. The new $2.6 million equity round adds further momentum, providing resources to strengthen its technology stack, grow its retail partnerships, and prepare for expansion beyond South Africa.
Unlike traditional Buy Now, Pay Later (BNPL) players, the startup does not extend new lines of credit or charge late. Float operates in South Africa’s growing BNPL market, which saw a 64% CAGR from 2019 to 2022 and is projected to grow at 35% CAGR through 2027.
It competes with platforms like PayJustNow, HappyPay, and PayFlex but differentiates itself by avoiding new credit issuance and late fees, addressing concerns about debt accumulation in an economy with high living costs and interest rates. The startup emphasizes responsible credit usage, enabling consumers to manage existing credit better while offering merchants higher transaction values and customer loyalty.
Float’s approach fills a gap in South Africa’s credit landscape by offering a responsible alternative to traditional BNPL models. By using existing credit card limits, it reduces financial risk for consumers while driving merchant sales. CEO Alex Forsyth-Thompson emphasizes empowering consumers to manage credit responsibly, positioning Float as a unique player in the fintech space.
With the latest funding secured, Float is better positioned to expand nationwide, fueling its ability to grow locally, innovate technologically and prepare for the global market.