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Standard Bank backs start-up Float with $11m

By , ITWeb
South Africa , 20 Mar 2024
Alex Forsyth Thompson, founder and CEO, Float.
Alex Forsyth Thompson, founder and CEO, Float.

Standard Bank has extended an $11 million loan to fintech Float to help it to expand its card-linked instalment platform.

The finance facility will help Float achieve its ambitious growth ambitions over the next four years.

The start-up's patented technology allows customers to ‘buy now’ and spread their repayment instalments over up to 24 months, interest- and fee-free, using the available limit on their current Visa or MasterCard credit card.

Float already works with around seven million preapproved credit cards in South Africa, and consumers don’t need to join or undergo a credit check.

The start-up has a well-established merchant base that it plans to grow significantly.

Since its launch in November 2021, Float has been adopted by merchants including household names such as iStore, Samsung, Dial-a-Bed, Cape Union Mart, and The Pro Shop, CycleLab.

The loan from Standard Bank, announced today, has been structured as a revolving credit facility, ensuring long-term security and flexibility of funding for Float.

Standard Bank says it provided a tailored solution “enabling Float's growth plans and empowering its management team through access to growth capital.”

Paul Masson, CFO, Float, says: " As we navigate this phase of accelerated growth, our focus remains on maintaining financial discipline and driving sustainable profitability."

Alex Forsyth Thompson, founder and CEO, Float, adds: "The support from Standard Bank comes at a time when we're approaching an inflection point in our growth and will be pivotal in fueling our business as we scale.”

He adds: “We have new merchants and partnerships in the pipeline and this funding ensures that we can continue to scale for the next few years."

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