Float, a Ghanaian fintech startup that manages cash flow and spending for African businesses, has raised US$17 million in debt and equity seed capital to accelerate its development and launch additional products.
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 joined the round, as did a number of noteworthy angel investors, including Michael Seibel, Sandy Kory (Horizon Partners), Karim Atiyeh and Eric Glyman (founders of Ramp), Gregory Rockson (mPharma) and Zach Lipson and Ross Lipson (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 organizations.
Jesse Ghansah founded the company in 2021, and it has since onboarded hundreds of customers across a wide spectrum of industries, and it now hopes to grow even faster after securing a US$17 million seed investment.
“Float set out on a mission to help millions of businesses throughout the continent flourish and fulfill their full potential,” Ghansah added.
“With this additional capital, we will continue to improve both our credit and software solutions in order to provide the best possible service to our rapidly expanding customer base.” We’re thrilled to be the go-to growth partner for businesses all around Africa.”
In the first six months of operation, Float received US$6 million in credit expenditures and cash advances to businesses, and its payment transaction volume has increased 26 times as more customers utilize Float to manage both domestic and international business payments.
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 areas and sectors.