Floatpays, a South African fintech startup, has raised $4 million in venture capital for its African expansion. South African on-demand pay provider, Floatpays has secured a little bit under US$4 million in a seed funding round that is oversubscribed to help it expand across Africa.
Floatpays was founded in 2019. It was a participant in the S21 cohort of the Silicon Valley-based Y Combinator accelerator. Floatpays is a technology platform that allows on-demand access to pay, stress-free savings, and financial education to build the financial wellness of employees.
After getting a 43% growth in its employer base, and also a 70% increase in users since they took part in Y Combinator, the startup has been able to raise a seed round of about US$4 million from investors like Base Capital, Finca Ventures, Global Founders Capital, Raba Partnership and 4DX Ventures, and some angel investors like Shaun Hurwitz, Alan Rutledge, Youcef Oudjidane and Olugbenga Agboola, co-founder and CEO of Flutterwave.
Existing backers like Founders Factory Africa, Kepple Africa Ventures, Norrsken Foundation, and MFS Investments were then joined by the new investors.
Simon Ward, founder of Floatpays said, “The investment allows us to consolidate our position in South Africa and expand into the rest of Africa. We are accelerating the development of important features that complement our existing product, such as our new interest-bearing savings account that is directly linked to employees’ paychecks.”
Raba Partnership was an early investor or partner in companies like Flutterwave and Yoco, and founder, George Rzepecki said he was elated by the potential technology has in giving fair and transparent financial products and services.
“Floatpays is a leader in the earned wage space and on their way to building the leading trusted brand across the continent. We are excited to partner with Simon and the team in supporting Floatpay’s mission in becoming the financial services platform of choice for Africa’s large and growing workforce”, Rzepecki said.
In the words of Simon, Floatpays was created as a “small company with big dreams to create a financially inclusive Africa”.
“I launched Floatpays as a social impact-driven business on a mission to help move employees out of bad debt cycles and into savings and long term financial wellness, Our mission is to educate employees on better personal finance management, support them with financial planning and saving, and give them an alternative to payday lenders or high-interest credit solutions when mid-pay cycle liquidity becomes a problem”, Simon Wards said.
Floatpays SA Fintech Startup Raises $4M Seed Funding Round For African Expansion
