Float, the four-year-old South African card-linked instalment platform, has successfully raised $2.6 million (R46 million) in its latest funding round.
The round was co-led by Invenfin and SAAD Investment Holdings, with participation from all existing investors, including Platform Investment Partners. Lighthouse Venture Partners also joined the round and provided advisory support throughout the deal.
The capital injection will be used to accelerate Float’s growth trajectory, which has already reached triple-digit levels since launch. Specifically, the funding will enable the company to scale its South African operations, invest further in enhancing its proprietary technology platform, and lay the groundwork for future market expansion.
Reinventing Credit for Consumers
Float is reshaping the way consumers use credit by offering a budget-friendly, interest- and fee-free instalment solution. Unlike traditional credit offerings that often burden consumers with high interest rates, fees, and complex repayment structures, Float promotes affordability and responsible spending. Its proprietary technology allows shoppers to split purchases into flexible instalments without taking on additional credit facilities and without incurring extra charges.
In South Africa, where a large proportion of cardholders face challenges in managing repayments, Float’s solution is proving to be both timely and transformative. By linking directly to existing credit cards, Float empowers consumers to manage their financial commitments more effectively, while also helping merchants boost sales and build customer loyalty.
Rapid Market Traction
Since its commercial launch in November 2021, Float has achieved remarkable traction. The platform now serves more than 2,000 stores and processes thousands of high-value transactions each month. Average order values are industry-leading, standing at approximately R10,000, while merchants using the platform have reported more than 130% increases in order values.
These results highlight not only the consumer demand for flexible repayment options but also the value merchants see in partnering with Float. By enabling higher-value transactions and giving customers more purchasing power, merchants can significantly improve both revenue and customer retention.
A Unique Approach to Instalments
Alex Forsyth-Thompson, founder and CEO of Float, emphasised the distinctiveness of the platform’s model:
“This funding round represents a significant vote of confidence in our approach to responsible credit usage, our ability to deliver genuine value to both merchants and shoppers, and the international scalability of our solution. While other platforms focus on issuing new credit, we’re empowering millions of consumers to manage their existing credit better, while further unlocking a multi-trillion-dollar opportunity for merchants.”
Forsyth-Thompson added that credit cards remain one of the most effective cashflow management tools available when used responsibly. “What sets Float apart is our focus on enabling that responsible usage while keeping the credit card as the preferred way to pay. By giving shoppers more flexibility and control, we help them manage their budgets and maintain strong credit records, all while merchants benefit from higher-value transactions and a more loyal customer base.”
Float’s flexible instalment terms and merchant-focused customisation options provide retailers with greater control, allowing them to tailor instalment offerings in line with their business models and customer needs.
Strong Partnerships and Investor Backing
Float has already forged strategic partnerships with leading payment processors, including Peach Payments and Adumo. These integrations enable seamless omni-channel processing across online platforms, physical stores, and payment links, ensuring consistency and ease of use for both merchants and consumers.
Investors have expressed strong confidence in the Float team and its differentiated approach. Theo van den Berg, investment executive at co-lead investor Invenfin, said:
“We’ve been very impressed with Alex, Paul Masson, CFO and COO, and the Float team’s execution and ambition, and are proud to partner with them. Float has created a genuinely differentiated proposition in the South African payments landscape, with its card-linked approach addressing a clear market gap while promoting responsible credit usage. The company’s impressive market traction, combined with its experienced management team and scalable technology platform, makes this an extremely compelling investment opportunity in the fast-growing fintech sector.”
Johann Snyman, Private Equity Principal at SAAD Investment Holdings, echoed the sentiment:
“At SAAD we love backing impressive entrepreneurs who are busy scaling remarkable businesses – Float ticks both these boxes for us and we’re excited for what the future holds for Alex and the team.”
Float’s growth journey has been further strengthened by an $11 million (R200 million) facility secured last year from Standard Bank, providing additional capital for expansion. The combination of strategic funding, strong merchant partnerships, and a differentiated consumer value proposition positions Float as one of the most exciting fintech players in South Africa today.
As the company continues to scale, Float remains committed to its vision of reimagining credit usage—helping consumers take greater control of their financial lives while enabling merchants to unlock significant new revenue opportunities.
