Float, a South African fintech that offers a card-linked instalment platform, has raised a $2.6m (R46m) funding round to scale its operations.
The investment was co-led by Invenfin, the venture capital arm of South African investment holding company Remgro, and SAAD Investment Holdings. All existing investors, including Platform Investment Partners, also participated in the round. Lighthouse Venture Partners also participated and played an advisory role on the deal.
The company plans to use the capital to expand its South African footprint, further develop its technology, and prepare for international expansion.
What does Float do?
Float’s proprietary technology allows shoppers to split purchases made on their existing credit cards into interest-free and fee-free monthly instalments at the point of sale, both online and in-store.
Unlike traditional Buy Now, Pay Later (BNPL) providers that issue new lines of credit, Float leverages the consumer’s existing and pre-approved credit limit. This means there is no new credit application, no credit check, and no risk of accumulating debt with a separate provider.
The platform is free for consumers, with Float charging a fee to the merchant for each transaction. For merchants, the appeal lies in increased sales conversions and higher basket sizes. Float reports that its partners have seen average order values (AOV) increase by over 130%, with a typical AOV of around R10,000 ($560) — significantly higher than many traditional BNPL services.
Why it matters
Float is positioning itself as a tool for responsible spending in an economy where managing credit is a major concern for consumers. By enabling more flexible use of an existing credit line, it aims to provide affordability without encouraging new debt.
“While other platforms focus on issuing new credit, we’re empowering millions of consumers to manage their existing credit better,” said Alex Forsyth-Thompson, founder and CEO of Float. “Credit cards remain one of the best cashflow tools available to consumers when used responsibly. Our focus is on enabling that responsible usage.”
This approach carves out a niche between the highly competitive BNPL market and traditional credit card payments.
Market traction and strategy
Since its commercial launch in November 2021, Float has partnered with over 2,000 stores, including major national retailers like iStore, Samsung, The Pro Shop, CycleLab, Cape Union Mart, and Dial-a-Bed, processing transactions worth millions of rands monthly.
The company has also integrated with major payment processors, including Peach Payments and Adumo, allowing for a wider rollout across different retail environments. This latest funding round follows an $11m (R200m) credit facility secured from Standard Bank last year to help finance its instalment-plan receivables.
The new equity injection will focus on scaling these partnerships and enhancing the platform’s features for merchants, who can customise the number of instalments they offer to customers.
Theo van den Berg, an investment executive at co-lead investor Invenfin, commented on the decision: “Float has created a genuinely differentiated proposition in the South African payments landscape. Its card-linked approach addresses a clear market gap while promoting responsible credit usage.”