On-demand payment provider Floatpays reached a significant milestone recently, with the local fintech securing just under $4 million during an oversubscribed seed funding round.
The investment now affords Floatpays the ability to accelerate the development on new features for its platform, such as an interest bearing savings account, as well as consolidate its position in South Africa before preparing for an expansion into other parts of the African continent.
This latest news follows a previous significant step that Floatpays made in July of last year, joining the well-known accelerator programme – Y Combinator. The fintech was the only South African startup in the Y Combinator summer class and is one of only a handful local companies to be accepted in the program’s history.
Part of the reason why it was accepted has been its rapid adoption despite the hurdles presented by the pandemic, with 43 percent growth of their employer base and 70 percent user growth since launch.
“We are witnessing the potential technology has in offering fair and transparent financial services products. 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,” enthused George Rzepecki, founder of Raba, one of the fintech’s early partners.
“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/high-interest credit solutions when mid-pay cycle liquidity becomes a problem,” added Floatpays founder, Simon Ward.
With several local fintechs looking to make their mark in 2022, it will be interesting to see where Floatpays features in the coming months and years.
[Image – Photo by Markus Spiske on Unsplash]
