Floatpays raises $1m from Naspers Foundry

Fresh from securing $4 million from a recent seed funding round, Floatpays has raised another $1 million. This time, the on-demand pay provider got the investment from Naspers Foundry, a R1.4 billion early-stage business funding vehicle dedicated to growing South Africa-focused technology companies.

Founded in 2019 by Simon Ward, Floatpays provides customers with real-time access to a portion of their earned but not yet paid income at any time during the month, giving them an alternative to using credit to cover unplanned expenses. 

Floatpays’s vision is to enable customers to achieve financial well-being by moving them from debt to savings, through improved access to their earnings, budgeting and financial awareness. Floatpays’s technology integrates with a company’s existing payroll system enabling employees to access a portion of their earned pay at any point during the pay cycle.

Simon Ward, Founder and CEO of Floatpays, said: “We welcome the support of and partnership with Naspers Foundry that will enable us to fulfil our vision of enabling South Africans to achieve financial well-being. Floatpays provides much-needed access to funds to ordinary people and a growing suite of other financial services, fostering a more productive and healthier workforce with greater financial security.” 

Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, said: “We’re excited to invest in and support Floatpays in its aim to help people avoid debt and provide support to South Africans during these challenging economic times. Financial inclusion is important to us, being well-aligned with our purpose of using technology to improve people’s everyday lives, and our commitment to helping our country towards economic recovery.”

Fabian Whate, Head of Naspers Foundry, said: “On-demand earned wage access is fast-growing within the fintech sector. While still nascent in South Africa, there is significant potential for Floatpays, which is focused on serving the underbanked. We’re delighted to partner with the Floatpays team, who have a proven track record of success in early-stage tech businesses, particularly in fintech.”

This is Naspers Foundry’s third fintech investment and its ninth transaction since its launch in 2019. Previous investments include R30 million in SweepSouth; R100 million in Aerobotics; R45 million in online learning platform, The Student Hub; R42 million in mobility technology company WhereIsMyTransport; R34 million in digital short-term insurance advice platform, Ctrl; R120 million (US$8.3m) investment in Naked; R54 million (US$3.4m) in car subscription company, Planet42