South African fintech startup Floatpays, an on-demand earned wage access platform that helps customers build financial wellness, secured ZAR15 million (US$1 million) in funding from Naspers Foundry as part of its US$4 million round it announced last month.
Founded in 2019 and a participant in the S21 cohort of the Silicon Valley-based Y Combinator accelerator, Floatpays is a technology platform that enables on-demand access to pay, seamless savings functionality and financial education to build employee financial wellness.
The startup announced last month it had secured just under US$4 million in an oversubscribed seed funding round to help it expand across Africa, and it has now been confirmed that US$1 million of that came from Naspers, which is one of the largest technology investors in the world, via its ZAR1.4 billion (US$96 million) Foundry fund launched in October 2018.
This is Naspers Foundry’s third fintech investment and its ninth transaction since its launch in 2019, with its portfolio including the likes of SweepSouth, Aerobotics, Food Supply Network, The Student Hub, WhereIsMyTransport, Ctrl and Naked Insurance.
“We welcome the support of and partnership with Naspers Foundry that will enable us to fulfil our vision of enabling South Africans to achieve financial well-being. Floatpays provides much-needed access to funds to ordinary people and a growing suite of other financial services, fostering a more productive and healthier workforce with greater financial security,” said Simon Ward, founder and CEO of Floatpays.
Fabian Whate, head of Naspers Foundry, said on-demand earned wage access was fast-growing within the fintech sector.
“While still nascent in South Africa, there is significant potential for Floatpays, which is focused on serving the underbanked. We’re delighted to partner with the Floatpays team, who have a proven track record of success in early-stage tech businesses, particularly in fintech,” he said.