South African fintech startup Float has secured US$2.6 million (R46 million) to accelerate growth at home and prepare for international expansion.
The funding round was co-led by Invenfin and SAAD Investment Holdings, with participation from existing investors including Platform Investment Partners, while Lighthouse Venture Partners advised on the deal.
This follows an US$11 million funding facility from Standard Bank last year.
“This funding round represents a significant vote of confidence in our approach to responsible credit usage and the international scalability of our solution,” said Alex Forsyth-Thompson, Float’s founder and CEO.
What Services Float Renders
Founded in 2021, Float is Africa’s first card-linked instalment platform, designed to let shoppers pay for purchases over time without interest or fees, but using their existing credit cards, not new loans.
A customer swipes a regular credit card at a participating merchant and then chooses to break the payment into monthly instalments directly through Float’s system.
The balance remains on the shopper’s credit card, but Float automates the instalment schedule so there are no late-payment penalties or hidden charges.
Forsyth-Thompson describes the platform as “a smarter way to use credit cards,” adding that it helps consumers maintain strong credit records while giving them breathing room to manage household budgets or unexpected expenses.
How Float Is Different from Others
While most “buy now, pay later” (BNPL) services create new credit lines, often encouraging customers to spend beyond their means, Float focuses on restructuring existing credit. The platform connects directly to card networks, so there is no additional debt risk and no separate credit checks once a card is approved.
Merchants can tailor instalment options, for example, offering two, three, or six-month plans, making it easier to attract big-ticket purchases such as appliances, electronics, and luxury goods.
This card-linked model reduces default risk, protects consumers from over-borrowing, and streamlines reconciliation for merchants.
“By enabling shoppers to control how they repay, we’re keeping the credit card as the preferred way to pay while ensuring it’s used responsibly,” Forsyth-Thompson said.
Investors’ Interest in Float’s Market Edge
Investors see Float as addressing a clear gap in South Africa’s payments landscape, where credit-card penetration is rising but flexible repayment tools remain scarce.
“Float has created a genuinely differentiated proposition with its card-linked approach while promoting responsible credit usage,” noted Theo van den Berg, investment executive at Invenfin.
Backers highlight the company’s scalable technology, rapid adoption curve, and strong leadership team, which includes CFO and COO Paul Masson.
With the global BNPL market projected to exceed US$500 billion in transactions by 2028, investors believe Float’s responsible-credit model could gain traction far beyond South Africa, especially in regions where regulators are tightening oversight of traditional BNPL providers.
Float’s Current Scaling Capacity
Float already powers transactions in over 2,000 retail locations, from major e-commerce platforms to physical stores, and processes thousands of high-value orders each month.
The average purchase facilitated through the service is roughly ZAR10,000 (around US$570), significantly higher than South Africa’s average retail ticket size, while merchants report over 130 percent growth in average order value after adopting Float.
The company has forged strategic integrations with payment processors Peach Payments and Adumo, enabling seamless omni-channel payments whether online, in-store, or via payment links.
These partnerships mean merchants can activate Float with minimal technical overhead, widening the platform’s reach across industries such as electronics, home goods, and high-end fashion.
The New Funding and Plans for Expansion
The US$2.6 million injection will support technology upgrades, including more sophisticated risk-management and analytics tools, and team expansion to strengthen operations across South Africa’s major cities.
Float also aims to pilot cross-border payment capabilities, a key step toward entering other African markets such as Kenya and Nigeria, and eventually regions like the Middle East and Europe where credit-card usage is high but instalment flexibility remains limited.
Building on a triple-digit annual growth trajectory, the company will invest in merchant acquisition, consumer education, and regulatory compliance to ensure smooth entry into new jurisdictions.
“We’re empowering millions of consumers to manage their existing credit better while unlocking a multi-trillion-dollar opportunity for merchants,” Forsyth-Thompson said, positioning Float as a sustainable alternative in the fast-growing global fintech ecosystem.
Talking Points
Float’s model shows promise, responsible use of existing credit, strong merchant uptake, and impressive order values, but success will hinge on careful execution.
The US$2.6 million raise is helpful but small for aggressive international expansion, and the company hasn’t detailed its revenue model, making profitability unclear. While linking to existing credit lowers underwriting friction, Float must manage fraud, late payments, and regulatory scrutiny.
Competition from banks and global BNPL players is another risk, and growth outside South Africa depends on targeting markets with strong card infrastructure and clear rules. In short, Float is well-positioned but must prove it can scale sustainably and protect margins while controlling risk.
