South African fintech, Happy Pay, has secured $1.8 million in pre-seed funding, setting the stage for rapid expansion and innovation in the country’s growing Buy Now, Pay Later (BNPL) sector.
In a funding round co-led by E4E Africa and 4Di Capital, Happy Pay successfully attracted $1.8 million to boost its operations. The round saw participation from a diverse group of investors, including DotExe Ventures, Launch Africa, Equitable Ventures, Felix Strategic Investment, U.S.-based Gaingels, and local angel investors. Fin Africa, a financial services provider specializing in credit, savings, and insurance, is also supporting the fintech’s debt facility.
Launched in 2023, Happy Pay has quickly become a prominent BNPL provider, offering interest-free, deposit-free credit solutions to South African consumers.
With over 150,000 active users and a remarkable 900% growth in its user base, the startup is leveraging AI-driven credit scoring to streamline the checkout experience for both customers and merchants.
Happy Pay plans to use this funding to introduce new products, scale its marketing efforts, and expand its team, all while increasing its merchant network. CEO Wesley Billett emphasized that this capital will allow the company to accelerate its growth and enhance the value delivered to its customers and partners.
“Access to affordable credit is critical for both consumers and merchants,” Billett said. “This funding enables us to expand our innovative offerings and better serve the communities we’re reaching.”
COO Patrick Postrehovsky noted the role Happy Pay plays in driving eCommerce growth for local merchants, providing them with access to new customers and higher transaction values. He highlighted the fintech’s unique position in offering zero-cost alternatives to traditional high-interest credit options, helping South African consumers navigate challenging economic conditions.
The rise of BNPL services in South Africa reflects growing eCommerce activity and the financial needs of the country’s unbanked and underserved population, positioning Happy Pay for continued success.
