South African fintech startup Float has raised $2.6 million (R46 million) in new funding as it accelerates efforts to reshape how consumers use credit cards. The round was co-led by Invenfin and SAAD Investment Holdings, with participation from Lighthouse Venture Partners and existing backers, including Platform Investment Partners.
The capital injection will fuel Float’s expansion in South Africa, enhance its proprietary technology, and prepare the business for international growth. Since its launch in late 2021, the platform has reported triple-digit growth and has quickly become a leading innovator in instalment-based payments.
Redefining Credit Use
Float operates as Africa’s first card-linked instalment platform, providing shoppers with a way to split purchases into interest-free and fee-free instalments. Unlike traditional “buy now, pay later” (BNPL) services, Float doesn’t issue new credit or penalise customers with late fees. Instead, it helps consumers better manage their existing credit card facilities by offering flexibility and control.
CEO and founder Alex Forsyth-Thompson explained that the company’s mission is to encourage responsible credit use. “While other platforms focus on issuing new credit, we’re empowering consumers to manage their existing credit better, all while giving merchants access to higher-value transactions and loyal customers,” he said.
Strong Adoption from Merchants
Float’s merchant network already includes more than 2,000 outlets, from household names like iStore, Samsung, and Cape Union Mart to specialised retailers such as CycleLab and The Pro Shop. Merchants have reported significant benefits, with average order values increasing by more than 130%. Shoppers typically spend around R10,000 per transaction using Float, far higher than traditional BNPL alternatives.
The platform has also formed partnerships with major payment processors, including Peach Payments and Adumo, enabling seamless integration across in-store, online, and payment link channels. This omni-channel capability has helped Float scale quickly in South Africa’s competitive retail sector.
Investor Confidence
For investors, Float represents both a market opportunity and a values-driven business model. Theo van den Berg, investment executive at Invenfin, said the company has created a differentiated solution in the South African payments ecosystem. “Float’s card-linked approach addresses a clear market gap while promoting responsible credit usage. Its traction, combined with a strong team and scalable platform, makes it a compelling investment,” he noted.
SAAD Investment Holdings echoed this sentiment, describing Float as an impressive example of entrepreneurial ambition in South Africa’s fintech sector. Both investors are backing the team not only for local growth but also for potential global expansion.
Scaling with Confidence
This latest funding round follows an $11 million (R200 million) facility secured from Standard Bank last year, providing Float with significant growth capital. With its customer base expanding and transaction volumes growing by 400% year-on-year, Float is positioning itself as a future leader in responsible fintech.
“Credit cards remain one of the best cashflow tools available when used responsibly,” Forsyth-Thompson emphasized. “What sets Float apart is our commitment to giving consumers the flexibility to manage their budgets while ensuring merchants benefit from larger sales and long-term loyalty.”
As the appetite for flexible, transparent payment solutions grows, Float’s blend of consumer empowerment and merchant value positions it as one of the most exciting fintech stories to emerge from South Africa in recent years.
