More
    HomeEcosystem NewsLatest FundingSouth Africa’s Standard Bank Pours $11M Into Local Fintech Startup Float

    South Africa’s Standard Bank Pours $11M Into Local Fintech Startup Float

    Published on

    spot_img

    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.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

    Latest articles

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.

    Fuzé Investment Series: Togolese Media Startup Makifaa Secures Funding

    Founded in in 2023 by Doris DJAGLO and Jean Pignan, Makifaa’s unique approach blends the creative talents of local photographers with cutting-edge artificial intelligence (AI) to deliver personalized media solutions within an impressive 48-hour timeframe.

    African Tech Startups: The Ups and Downs of AfDB’s Venture Capital Portfolio

    The Alitheia IDF Fund, for instance, saw its carrying value increase from $4.2 million in 2022 to $5.1 million in 2023, indicating successful investments and positive performance.

    More like this

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.

    Fuzé Investment Series: Togolese Media Startup Makifaa Secures Funding

    Founded in in 2023 by Doris DJAGLO and Jean Pignan, Makifaa’s unique approach blends the creative talents of local photographers with cutting-edge artificial intelligence (AI) to deliver personalized media solutions within an impressive 48-hour timeframe.