- South Africa’s Floatpays closes a seed round of $4M to develop and scale social-impact fintech across the continent
- Floatpays' fintech for financial inclusion aims to support employees to break free from debt cycles and move toward saving long term
- Investors that participated in the round include Base Capital, Global Founders Capital, Raba Partnership, Finca Ventures and 4DX Ventures, plus angels
Floatpays has announced the close of a $4 million seed round, with plans to expand its service offering beyond South Africa to the continent. Floatpays’ fintech enables on-demand pay and saving, as well as financial education to help wage earners break free of debt cycles, avoid debt traps and achieve long term financial wellness. The impact-driven fintech looks to scale its solution in South Africa and expand into new markets, where it is most needed and high cost credit and lending is pervasive in Africa.
Floatpays is a social impact-driven business on a mission to help move employees out of bad debt cycles and transition toward long-term financial wellness. It has won support from a strong roster of investors, angels and advisors that include Base Capital, Global Founders Capital, Raba Partnership, Finca Ventures and 4DX Ventures and angel investors, Olugbenga Agboola, Shaun Hurwitz and Youcef Oudjidan, participating in this round.
Floatpays’ platform addresses a period of financial vulnerability for millions of employees whose cash on hand runs thin between paydays - payday lenders and other high cost credit products are common in markets across the continent, lead to compounding debt cycles and stifle development. Floatpays also supports financial literacy, providing employees resources to learn better ways to manage personal finances, plan and save for the long term.
Floatpays was established as a ‘small company with big dreams to create a financially inclusive Africa.’
Simon Ward, Founder & CEO of Floatpays:
“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.”
George Rzepecki, Founder of Raba Partnership:
“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 team in supporting Floatpay’s mission in becoming the financial services platform of choice for Africa’s large and growing workforce.”