Float, Ghana’s Fintech Startup Closes $17m seed round
Float, a Ghanaian fintech startup that provides a cash flow management and spend platform for African businesses, has raised a US$17 million round of debt and equity seed funding to accelerate growth and the launch of new products.
Float offers credit lines to small businesses, as well as solutions for managing business accounts and wallets in a single dashboard, as well as capabilities for automating bill payments, vendor and supplier payments, and invoice collections. Simply defined, it seeks to function as a “financial operating system” for businesses.
Since its introduction six months ago, the firm has onboarded hundreds of customers from a variety of industries, and it now hopes to expand faster after receiving a US$17 million initial investment.
Tinder co-founder Justin Mateen’s JAM Fund and Tiger Global led the deal, with Cauris providing debt financing.
Kinfolk, Soma Capital, Ingressive Capital, and Magic Fund also participated in the round, as did some notable angels such as Michael Seibel (YC CEO – Float is an alumni, and founder Jesse Ghansah has gone through the accelerator twice), Sandy Kory (Horizon Partners), Karim Atiyeh and Eric Glyman (founders of Ramp), Gregory Rockson (mPharma), Zach Lipson and Ross Lipson (mPharm (founders of Dutchie).
Ghansah stated that the fresh funding will be used to accelerate the development of the company’s cash management platform and to introduce new loan solutions customized to certain business verticals and industries.
“Float set out on a mission to deliver more cashflow and liquidity to millions of businesses throughout the continent in order to help them expand and fulfill their true potential,” he explained.
“With this fresh capital, we will continue to improve both our credit and software products in order to provide the finest experiences for our rapidly expanding customer base.” We are thrilled to be the preferred growth partner for businesses across Africa.”
Float reached US$6 million in credit expenditure and cash advances to businesses in the first six months of operation, and its payment transaction volume has increased 26x as more customers utilize Float to manage both local and international business payments.
