South African fintech Float has secured $2.6 million (R46 million) in new funding to accelerate its growth and expand its innovative card-linked instalment solution. The round was co-led by Invenfin and SAAD Investment Holdings, with additional participation from Platform Investment Partners and Lighthouse Venture Partners. This investment marks a significant milestone for the four-year-old startup as it continues to redefine how consumers use credit responsibly.
Funding Details and Strategic Backing
The latest capital injection will be used to scale Float’s South African operations, enhance its proprietary technology platform, and prepare for international expansion. Lighthouse Venture Partners not only invested but also advised on the deal, further strengthening Float’s credibility among investors. Existing backers doubled down on their commitments, reinforcing confidence in the company’s growth strategy and execution.
Redefining Credit for Consumers
Float’s model is designed to address a pressing issue in South Africa, where many cardholders struggle to manage repayments. The company offers an interest-free and fee-free instalment system that works with existing credit card limits, avoiding the need for consumers to take on new debt. By splitting purchases into manageable instalments, the platform encourages responsible spending and makes higher-value transactions more accessible.
Merchant Growth and Market Traction
Since launching in late 2021, Float has expanded rapidly, partnering with over 2,000 stores across South Africa. The platform processes thousands of transactions each month, with an average order value of around R10,000, nearly ten times higher than typical buy now, pay later platforms. Merchants using Float have reported increases of more than 130 percent in average order values, underscoring the strong demand for flexible payment options.
Leadership Perspective
Founder and CEO Alex Forsyth-Thompson emphasized that the funding reflects investor confidence in Float’s approach to responsible credit usage. He noted that unlike traditional credit providers or buy now, pay later firms, Float is focused on empowering consumers to manage existing credit facilities more effectively. Forsyth-Thompson highlighted that this strategy not only benefits shoppers but also opens a multi-trillion-dollar opportunity for merchants seeking higher-value, repeat customers.
Differentiation in a Crowded Market
Float distinguishes itself by prioritizing flexibility and control for both shoppers and merchants. Merchants can fully customize instalment offerings, tailoring settlement models, payment periods, and sales channels, whether online, in-store, or through payment links. This adaptability, combined with the absence of late fees or sign-up processes, sets Float apart from traditional credit and instalment platforms.
Strategic Partnerships and Ecosystem Support
To strengthen its payment capabilities, Float has secured partnerships with major processors such as Peach Payments and Adumo. These collaborations enable seamless omni-channel integration across e-commerce, in-store transactions, and payment links, ensuring a smooth experience for both shoppers and merchants. The company also received a substantial $11 million facility from Standard Bank last year, giving it access to additional growth capital.
Investor Confidence and Endorsements
Investors backing this round highlighted Float’s strong execution and differentiated market position. Invenfin’s investment executive, Theo van den Berg, praised the management team’s ability to deliver a unique solution in the South African payments ecosystem. Similarly, SAAD’s private equity principal, Johann Snyman, described Float as a business led by ambitious entrepreneurs with the potential to scale significantly.
Merchant Network and Market Expansion
Float’s growing merchant base includes high-profile brands such as iStore, Samsung, Dial-a-Bed, Cape Union Mart, and MiFitness. By embedding itself within household names, the platform has processed transactions worth millions of rands monthly and achieved 400 percent year-on-year growth in transaction volumes. This traction underscores its scalability and readiness for broader market expansion.
Float’s $2.6 million funding round marks a critical step in its mission to transform how South Africans use credit. By offering a fee-free, interest-free instalment solution that works with existing credit card facilities, the company is carving out a unique niche in the payments landscape. With strong backing from institutional investors, strategic partnerships, and a growing merchant network, Float is well-positioned to scale further and bring its responsible credit model to new markets.