Float, a Ghanaian fintech startup that manages cash flow and spend for African businesses, has raised US$17 million in debt and equity seed funding to accelerate its development and launch additional products.
According to Ghansah, the new funds will be used to accelerate the development of the company’s cash management platform and to create new credit products customized to certain business verticals and industries.
“Float set out on a mission to provide more cashflow and liquidity for millions of businesses across the continent to help them grow and reach their true potential,” he said.
“With this new funding, we will continue to refine both our credit and software products to deliver the best experiences for our fast-growing customer base. We are excited to be the growth partner of choice for businesses across Africa.”
The startup has onboarded hundreds of customers across a wide range of industries since its launch six months ago, and it now hopes for faster expansion after securing a US$17 million seed round. Tinder co-founder Justin Mateen’s JAM Fund and Tiger Global led the deal, with Cauris providing debt financing.
Michael Seibel (YC CEO – Float is an alumni, and founder Jesse Ghansah has been through the accelerator twice), Sandy Kory (Horizon Partners), Karim Atiyeh and Eric Glyman (founders of Ramp), Gregory Rockson (mPharma), Zach Lipson and Ross Lipson (founders of mPharma) all participated in the round (founders of Dutchie).
Small businesses can use Float to get credit lines, as well as tools to manage their accounts and wallets in one place, as well as solutions to automate bill payments, vendor and supplier payments, and invoice collections. Simply defined, it aspires to act as a “financial operating system” for businesses.
In the first six months of operation, Float received US$6 million in credit spend and cash advances to businesses, and its payment transaction volume has increased 26 times as more customers utilize Float to manage both local and international business payments.