In today’s fast-changing world of digital finance, South African fintech startup Float is making headlines after raising $2.6 million (R46 million) in fresh funding. The four-year-old company, which has built a unique card-linked installment platform, attracted investment from Invenfin and SAAD Investment Holdings as co-leads. Existing investors such as Platform Investment Partners also joined the round, while Lighthouse Venture Partners played both an investment and advisory role. This funding marks another major step for Float, which is reshaping how shoppers manage credit card payments in a market where many consumers struggle with debt repayments.
A NEW WAY TO USE CREDIT RESPONSIBLY
Unlike many “buy now, pay later” platforms that issue fresh loans, Float works differently. It connects directly to a shopper’s credit card, allowing them to split big purchases into interest-free installments without applying for new credit or paying extra fees. This approach helps consumers use their existing credit facilities more responsibly while still getting the flexibility they need. According to Float, the platform now serves over 2,000 stores and handles thousands of monthly high-value transactions. The average transaction value is around R10,000, and merchants using Float report more than 130% growth in their average order values. This makes the platform attractive not only to shoppers but also to retailers looking to boost sales.
Founder and CEO Alex Forsyth-Thompson explained why this model is different: “This funding round represents a significant vote of confidence in our approach to responsible credit usage, our ability to deliver genuine value to 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.”
Forsyth-Thompson also emphasized that credit cards remain one of the best financial tools when used wisely. “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.”
BUILDING STRONG PARTNERSHIPS FOR GROWTH
Float has not only gained investor trust but also secured strategic partnerships with major payment processors such as Peach Payments and Adumo. These collaborations allow the platform to work seamlessly across online, in-store, and payment link channels, further boosting its reach in South Africa.
Investors have also expressed strong confidence in the team’s execution and vision. Theo van den Berg, investment executive at Invenfin, praised the company’s growth and market positioning: “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.”
Similarly, Johann Snyman, Private Equity Principal at SAAD, said, “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.”
Since its launch in November 2021, Float has already partnered with leading retailers, including iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart, and MiFitness. Transactions running into millions of rand flow through the platform monthly. Adding to its momentum, Float also secured a major boost last year when Standard Bank provided an $11 million (R200 million) facility, giving it access to growth capital to fuel expansion.
With its latest funding, Float plans to scale operations in South Africa, strengthen its proprietary technology, and prepare for future market expansion. For shoppers, it means more ways to shop smartly and stay debt-free. For merchants, it signals bigger baskets and more satisfied customers. Float’s journey shows how fintech innovation can create solutions that benefit both consumers and businesses, a lesson with strong relevance across Africa, including Nigeria, where digital payments continue to grow rapidly.
