South African on-demand pay provider Floatpays secured just below US$4million in an oversubscribed seed round to expand its operations across Africa.
Floatpays was founded in 2019 and is a participant in the S21 cohort of Silicon Valley-based Y Combinator accelerator. It is a technology platform that enables on-demand pay access, seamless savings functionality, and financial education to help employees build financial wellness.
The startup has seen a 43 percent increase in its employer base, and a 75% increase in users since participating in Y Combinator. It has also raised a seed round of almost US$4million from investors such as Global Founders Capital and Base Capital as well as angels Olugbenga Agboola and Shaun Hurwitz.
These new investors will join the existing backers Founders Factory Africa and Kepple Africa Ventures as well as Norrsken Foundation, MFS Investments, MFS Investments, and Founders Factory Africa.
“The investment will allow us to strengthen our position in South Africa, and also expand our reach into other African countries. Simon Ward, founder and CEO of Floatpays, stated that we are accelerating the development important features that compliment our existing product. He cited our new interest bearing savings account, which is directly linked with employees’ paychecks, as an example.
Raba Partnership was an investor or partner in Flutterwave and Yoco in their early days. George Rzepecki, founder of Yoco, said that he was excited about the potential for technology to offer fair and transparent financial products.
“Floatpays is a leader within the earned wage space, and they are on the way to becoming the most trusted brand in Africa. He said that Simon and his team are thrilled to support Floatpay in their mission of becoming the preferred financial platform for Africa’s growing workforce.
Ward says that Floatpays was founded as a small company with big dreams in order to make Africa financially inclusive.
“Floatpays was founded by me as a socially-driven business with a mission of helping employees get out of bad debt and into saving and long-term financial wellness. He stated that Floatpays’ mission is to help employees learn better financial management and to support them in saving and planning.