(Ecofin Agency) - Ghanaian digital cash management and lending fintech Float has raised $17 million to support its business; $10 million is a debt raised from Cauris and $7 million is provided as equity in a deal led by Tiger Global and Jam Fund.
“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,” co-founder and MD Jesse Ghansah said.
In Africa where cash flow is a major challenge, 85% of SMEs do not have access to financing, according to official data. Float has therefore “set out on a mission to provide more cash flow and liquidity for millions of businesses across the continent to help them grow and reach their true potential,” the MD explained. Citing data from a study, the company reports that more than 51% of the 44 million formal SMEs in sub-Saharan Africa say they need more financing than they can get to grow their business.
The fintech has a presence in Ghana and Nigeria and now plans to expand into Kenya and South Africa by Q2 2022. The company will also use part of the investment to enhance its cash management platform and launch new credit products tailored to SMEs in Africa.
Float was co-founded in 2020 by Jesse Ghansah and Barima Effah and first operated as Swipe. It became operational in June 2021, one year after its inception.