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Floatpays secures R15M investment from Naspers Foundry
Floatpays, a Cape Town-based on-demand earned wage access platform, has received a R15 million investment from Naspers via its early-stage tech investment arm, Naspers Foundry. This is Naspers Foundry’s third fintech investment and its ninth transaction since its launch in 2019.
Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, said: “We’re excited to invest in and support Floatpays in its aim to help people avoid debt and provide support to South Africans during these challenging economic times. Financial inclusion is important to us, being well-aligned with our purpose of using technology to improve people’s everyday lives, and our commitment to help our country towards economic recovery.”
Floatpays Proof of Impact Study 2021, reported that 88% of users said that they were better off financially after using the platform
Simon Ward, Founder and CEO of Floatpays, said: “We welcome the support of and partnership with Naspers Foundry that will enable us to fulfill 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.”
More than one-quarter of customers sampled in the Wellness Warehouse Case Study conducted in 2021 said they were able to avoid payday loans because of the earned wage access platform. The same study reported that 88% of users said that they were better off financially after using the platform.
Founded in 2019, Floatpays’ vision is to empower people with the ability to achieve financial well-being by moving them from debt to savings, through improved access to their earnings, budgeting and financial awareness. The platform provides its customers with real-time access to a portion of their earned but not yet paid income at any time during the month, giving them an alternative to using credit to cover unplanned expenses.
Floatpays’ technology integrates with a company’s existing payroll system allowing employees to access a portion of their earned pay at any point during the pay cycle.
The Floatpays solution for employees is available on smart and feature phones through an app on iOS, Android or by USSD. Employees can access their withdrawals through Floatpays’ instant money vouchers and via electronic funds transfers (EFTs). Employees can use their earned pay to buy living essentials such as pre-paid vouchers for mobile data, airtime, electricity or medical care via the app or USSD.
Fabian Whate, Head of Naspers Foundry, said: “On-demand earned wage access is 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.”
Read more: Naspers invests R120 million in Joburg-based insurtech startup Naked
Featured image: Supplied