Float, a card-linked instalment platform, has successfully secured R46 million ($2.6 million) in funding to enhance its operations in South Africa. This investment will enable the company to improve its proprietary technology and prepare for expansion into regional markets.
The funding round was co-led by Invenfin and Saad Investment Holdings, with support from existing investors, including Platform Investment Partners. Lighthouse Venture Partners also contributed to the investment and provided advisory services.
Growth Plans
Founded in 2021, Float has experienced rapid growth by allowing consumers to split their purchases into interest- and fee-free instalments using their existing credit cards. The platform currently processes thousands of transactions each month across more than 2,000 partner stores, with merchants reporting average order values of approximately R10,000 and a remarkable 130% increase in sales per transaction.
The newly acquired capital will help Float maintain its impressive growth trajectory while further enhancing its technology platform.
Investor Confidence
The investment executive from Invenfin highlighted that Float has established a distinctive offering in the South African payments landscape, effectively addressing a market gap while promoting responsible credit usage. Additionally, a private equity principal from Saad noted the company’s appeal, emphasising their enthusiasm for supporting exceptional entrepreneurs who are scaling innovative businesses.
Market Partnerships
Float has formed partnerships with payment processors such as Peach Payments and Adumo, allowing for omni-channel processing across online, in-store, and payment link transactions. Notable retail partners include iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart, and MiFitness.
In 2023, Float also secured a significant $11 million (R200 million) facility from Standard Bank, providing additional access to growth capital. This funding will further support Float’s ambitious plans in the South African market.