Standard Bank has committed to an $11 million loan to fintech company Float, aimed at facilitating the expansion of its innovative card-linked installment platform.
Standard Bank Leases $11 Million to Aid Startup Float
This financial facility will support Float’s ambitious growth plans over the next four years, providing the necessary capital to drive its expansion strategy.
Float’s proprietary technology enables customers to make purchases and spread their repayment installments interest- and fee-free for up to 24 months, utilizing the available limit on their existing Visa or MasterCard credit cards.
Notably, Float’s platform boasts a user-friendly experience, with no requirement for customers to undergo credit checks or join additional programs.
With an existing base of approximately seven million preapproved credit cards in South Africa, Float has established a solid foundation for growth.
The company plans to further expand its merchant network, which already includes prominent names such as iStore, Samsung, Dial-a-Bed, Cape Union Mart, The Pro Shop, and CycleLab.
Long-term Security and Flexibility in Funding
Standard Bank’s loan, structured as a revolving credit facility, provides Float with long-term security and flexibility in funding, aligning with the fintech company’s growth trajectory.
This tailored financial solution reflects Standard Bank’s commitment to supporting innovative ventures and empowering management teams through access to growth capital.
Paul Masson, CFO of Float, emphasizes the company’s focus on financial discipline and sustainable profitability amidst accelerated growth.
He affirms, “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 of Float, expresses gratitude for Standard Bank’s support, recognizing its pivotal role in the company’s growth trajectory. He underscores the significance of this funding in propelling Float’s business forward, particularly as it approaches a critical inflection point in its growth journey.
The Forthcoming Expansion of Float’s Merchant Network
Thompson highlights the forthcoming expansion of Float’s merchant network and partnerships, affirming that the funding ensures the company’s ability to scale effectively over the coming years.
Standard Bank’s investment in Float exemplifies its commitment to fostering innovation and supporting the growth of disruptive fintech solutions in South Africa.
Through strategic partnerships and tailored financial solutions, Standard Bank enables companies like Float to realize their full potential, driving economic growth and fostering financial inclusion in the region.
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