There are numerous platforms available for sending, receiving, and even saving money. Some of these Apps now help you save with interest while also providing financial education, and these platforms are gaining traction and investors’ attention.
Floatpays, a South African firm, is an example of an on-demand payment startup that just raised $4 million in an oversubscribed seed round to expand across Africa.
Floatpays is a digital platform that offers on-demand access for payment, smooth savings ability, and financial knowledge to enhance employee financial welfare.
It was founded in 2019 and is a member of the S21 cohort of the Silicon Valley-based Y Combinator incubator.
Since participating in Y Combinator, the fintech has secured a seed round worth nearly US$4 million from investors such as Global Founders Capital, Base Capital, Finca Ventures, Raba Partnership, and 4DX Ventures, as well as angels Alan Rutledge, Shaun Hurwitz, Youcef Oudjidane, and Olugbenga Agboola, the co-founder and CEO of Flutterwave.
Techbuild’s Take
On-demand pay is a market where employees can get paid the same day or the next day.
This platform has been there for quite some time, but with the support of cutting-edge technology, it has vastly improved.
Employers are more than ever reacting to the requirements of their employees, particularly the younger generation, and making them financially educated.
The number of activities centered on African fintechs’ on-demand payment businesses continues to rise.
Nigeria’s OneClick, Cadana, Paystack, and other platforms have received what appears to be similar funding, Floatpays joins the effort to expand throughout Africa.
Founders Factory Africa, Kepple Africa Ventures, Norrsken Foundation, and MFS Investments are among the current funders.
The investment would help Floatpays to solidify its place in South Africa and extend into the African region, according to Simon Ward, the company’s founder.
The company is speeding up the creation of major characteristics that complement its current offering, such as a new interest-bearing savings account that is linked directly to employees’ salaries.
Raba Partnership was an early investor or partner in companies like Flutterwave and Yoco, and founder George Rzepecki expressed excitement about the possibility of technology in providing clear and honest financial services.
According to the startup, Floatpays is a pioneer in the earned salary industry and is on its path to becoming the continent’s most reputable company.
The founder expressed his delight at the prospect of working with Simon and his team to help Floatpay achieve its goal of becoming the preferred financial services platform for Africa’s big and rising workforce.
With this lead, more on-demand platforms are expected to emerge, and investors will pay close attention to them.
Don’t miss important articles during the week. Subscribe to techbuild.africa weekly digest for updates.
