South African Fintech Startup Float Raises $2.6 Million (R46 Million) to Scale Operations
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Float, a South African fintech startup that offers card-linked instalment payments, has raised $2.6 million (R46 million) in new funding. The round was co-led by Invenfin and SAAD Investment Holdings, with support from existing investors, including Platform Investment Partners and Lighthouse Venture Partners.
The funding will help Float expand its operations in South Africa, enhance its technology platform, and prepare for entry into new markets. The company has experienced strong growth since its launch four years ago.
Float offers a unique way for consumers to use credit more responsibly. Instead of taking on new loans, shoppers can split their purchases into interest-free, fee-free instalments using their existing credit cards. This makes purchases more affordable and helps cardholders avoid the debt traps often linked with traditional credit products.
Currently, Float is used in over 2,000 stores and processes thousands of high-value transactions every month. Average order values on the platform are about R10,000, with merchants reporting over 130% growth in average order sizes.
Founder and CEO Alex Forsyth-Thompson said the funding reflects investor confidence in Float’s mission to promote responsible credit usage and create value for both shoppers and merchants. “While other platforms issue new credit, we help consumers manage their existing credit better. At the same time, merchants unlock bigger sales opportunities,” he said.
He added that Float stands out by offering flexible installment terms and giving merchants full control over how installment payments are structured. “Credit cards are powerful tools when used responsibly. Float’s goal is to support that responsible usage, helping customers budget better and build strong credit records while merchants enjoy higher-value sales and more loyal customers.”
Float has already secured key partnerships with major payment processors, including Peach Payments and Adumo, enabling seamless transactions across online, in-store, and payment link channels.
Investors praised Float’s growth and innovation. Theo van den Berg, Investment Executive at Invenfin, said: “Float has built a unique solution in South Africa’s payments industry, addressing a real market gap while encouraging responsible credit use. Their strong traction, scalable technology, and experienced team make this a standout investment opportunity.”
Johann Snyman, Private Equity Principal at SAAD, added: “We love backing impressive entrepreneurs who are scaling remarkable businesses – Float ticks all the boxes, and we’re excited for what’s ahead.”
Since its launch in November 2021, Float has partnered with well-known brands such as iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart, and MiFitness, processing transactions worth millions of rands each month.
In 2023, Float also secured an $11 million (R200 million) growth facility from Standard Bank, further strengthening its ability to scale.
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