Ghana credit line fintech company Float recently announced that the company has raised a funding of $17 million in a part equity and debt funding seed round, and the funding amount will be used to improve the cash management platform and new business products, according to media reports.
The funding round was a mix of $7 million equity and $10 million debt. The debt financing was provided by Cauris, while Tiger Global and JAM Fund, the investment firm of Tinder co-founder Justin Mateen co-led the equity bit. Other VC firms involved in the equity round include Kinfolk, Soma Capital, Ingressive Capital, and Magic Fund. Additionally, a couple of angel investors like Combinator CEO Michael Seibel, Sandy Kory of Horizon Partners, Ramp founders Karim Atiyeh and Eric Glyman, Gregory Rockson of mPharma and Dutchie founders Zach Lipson and Ross Lipson also participated in the funding round.
Float was founded by Jesse Ghansah and Barima Effah in 2020. The company also went live with its product offering in June 2021 after undergoing a rebranding from its former name Swipe. Apart from credit line for SMBs, Float also displays software tools where businesses can manage their accounts and wallets from a single dashboard.
Ghansan told the media, “The big challenge is that credit needs of businesses are very different. The credit needs of retail are very different from the credit needs of a services business, or the credit needs of agriculture, business or pharmaceutical or medical supplies businesses. So we are trying to dig deep into which credit products work for certain verticals. And so that’s what we’ve been working on so far.”