South Africa’s Float raises $2.6 million to scale card-linked instalment service

Float, a South African fintech startup, has received $2.6 million (R46 million) in Invenfin and SAAD Investment Holdings-co-led fresh funding to accelerate its expansion across the country and prepare for international growth. Existing investors also participated, with advisory support from Lighthouse Venture Partners. This marks another milestone for the startup as it continues to redefine how South Africans use credit cards.

Launched in late 2021, Float positions itself as Africa’s first card-linked instalment platform. Unlike traditional Buy Now, Pay Later (BNPL) players, the startup does not extend new lines of credit or charge late fees. Instead, it allows shoppers to split their purchases into interest-free, fee-free instalments using their existing credit card limits. This approach removes the risks and costs associated with new borrowing while encouraging more responsible credit use.

The Cape Town-based startup has seen rapid traction since launch. The platform now serves nearly 2,000 retail partners across South Africa. These include household names such as iStore, Samsung, Cape Union Mart, and Dial-a-Bed. For merchants, the model has proven highly effective, with average order values sitting at around R10,000 and basket sizes increasing by more than 130%.

Commenting on the new investment, Float’s founder and CEO Alex Forsyth-Thompson said in a statement,  “This funding round represents a significant vote of confidence in our approach to responsible credit usage, our ability to deliver genuine value to both merchants and shoppers, and the international scalability of our solution.”

Investors have echoed this sentiment. Theo van den Berg of Invenfin praised Float’s differentiated model, noting that it fills a critical gap in South Africa’s credit environment by leveraging existing card infrastructure rather than creating new debt obligations. He added that the solution empowers consumers while giving merchants a powerful tool to drive sales.

The company’s strategy also builds on previous financial backing. In March 2024, Float secured an $11 million (ZAR 200 million) receivables financing facility from Standard Bank. That facility enabled the startup to expand its merchant reach and scale its card-linked installment offering. The new $2.6 million equity round adds further momentum, providing resources to strengthen its technology stack, grow its retail partnerships, and prepare for expansion beyond South Africa.

Float’s unique business model 

What makes Float stand out in the fintech landscape is its sharp distinction from typical BNPL models. Many BNPL providers issue new credit and impose strict repayment terms that can result in late fees or penalties. Float avoids this by working within the boundaries of consumers’ existing credit card limits. This approach reduces underwriting costs, lowers regulatory risk, and provides a safer, more sustainable option for both shoppers and merchants.

As the startup mull plans for international expansions, challenges remain. Credit card penetration varies across African markets, which could influence adoption in regions where card usage is still limited. 

Float may need to forge strong partnerships with local issuers and payment processors to replicate its success outside South Africa. Moreover, global scrutiny of point-of-sale lending products means regulatory compliance will be essential as the platform scales.

Despite these hurdles, Float’s trajectory is a strong signal of the growing sophistication of South Africa’s fintech sector. Its emphasis on responsible credit, combined with measurable value for merchants, positions it as one of the country’s most promising startups. The fact that seasoned investors have doubled down on the company underlines the strength of its model and its potential to expand internationally.

South Africa’s fintech ecosystem has already produced innovative players like Stitch, Ozow, and Entersekt. Float is quickly joining that list, carving out its niche by reshaping how consumers interact with credit. 

With its latest funding, the startup is better positioned to expand nationwide, scale its operations, and prepare for new markets.

The $2.6 million raise is more than just fresh capital. It is a clear statement of investor confidence in the startup’s strategy, technology, and long-term vision. 

As the startup builds on its domestic success, Float’s challenge will be balancing rapid growth with responsible lending practices. If it succeeds, it could become one of South Africa’s most influential fintech exports in the coming years.