In a significant boost to South Africa’s burgeoning fintech sector, Standard Bank has announced an $11 million loan to support the expansion of local fintech startup Float. The injection of capital is aimed at propelling Float’s innovative card-linked instalment platform to new heights.
Float’s unique offering allows customers to make purchases and spread their repayment instalments over a period of up to 24 months, without incurring any interest or fees. Leveraging the available limit on their Visa or MasterCard credit cards, consumers can enjoy the flexibility of deferred payments without the need for additional credit checks or memberships.
The fintech startup has already gained traction in the South African market, boasting a user base of approximately seven million preapproved credit cards. Notably, Float has secured partnerships with prominent merchants, including industry giants such as iStore, Samsung, Dial-a-Bed, Cape Union Mart, The Pro Shop, and CycleLab.
Today’s announcement of the $11 million loan from Standard Bank marks a significant milestone for Float. The financing arrangement, structured as a revolving credit facility, provides the startup with long-term stability and flexibility in funding. Standard Bank emphasizes that the tailored solution is designed to support Float’s growth ambitions and empower its management team with access to essential growth capital.
Commenting on the development, Float’s CFO, Paul Masson, underscored the company’s commitment to maintaining financial discipline while driving sustainable profitability amid accelerated growth. Masson stated, “As we navigate this phase of accelerated growth, our focus remains on maintaining financial discipline and driving sustainable profitability.”
Meanwhile, Alex Forsyth Thompson, Float’s founder and CEO, expressed gratitude for the support from Standard Bank, emphasizing its timely nature as Float approaches a critical juncture in its growth trajectory. Thompson remarked, “The support from Standard Bank comes at a time when we’re approaching an inflection point in our growth and will be pivotal in fueling our business as we scale.”
Looking ahead, Float is poised to capitalize on its newfound financial backing to further expand its merchant network and forge strategic partnerships. Thompson affirmed, “We have new merchants and partnerships in the pipeline, and this funding ensures that we can continue to scale for the next few years.”
The partnership between Float and Standard Bank reflects the growing synergy between traditional financial institutions and innovative fintech startups, underscoring South Africa’s position as a hotbed for financial innovation and technological advancement. With access to substantial funding and a robust business model, Float is primed to spearhead transformative changes in the country’s financial landscape.
