Happy Pay secures $1.8M pre-seed funding to drive South Africa’s financial inclusion

Happy Pay, a South African fintech company specializing in Buy Now, Pay Later (BNPL) services with 150,000 active users, has secured $1.8 million(R32 Million) in pre-seed funding.

The funding round was led by prominent venture capitalists, including E4E Africa and 4Di Capital, with participation from DotExe Ventures, Launch Africa, Equitable Ventures, Felix Strategic Investment, Gaingels (USA), and several local angel investors. 

“We are proud to support Happy Pay’s mission of offering equitable financial solutions to South Africans’” said Timothy Nuy, CEO of FinAfrica (formerly known as Finclusion Group), who is also backing Happy Pay’s capital raise. 

According to the company’s announcement, the capital will be used to launch new innovative products, ramp up marketing, and expand its network of merchants. The funds will also support strategic personnel expansion, with a focus on sustainable growth.

“This funding will enable us to accelerate our growth and expand our innovative product offerings, ultimately providing more value to the customers and merchants that we serve,” Wesley Billett, co-founder and CEO of Happy Pay, expressed excitement over the funding.

Happy Pay which was launched in 2023, has experienced remarkable growth, with a 900% surge in its user base. The company attributes this expansion primarily to millennials and Generation Z, who prefer BNPL solutions over traditional credit cards due to the transparency, convenience, and avoidance of long-term debt associated with BNPL.

With the backing of venture capital players and the successful integration of AI-driven credit solutions, the company is positioned to reshape how consumers and merchants engage with BNPL services.

Anton van Vlaanderen, partner at 4Di Capital, praised the team’s performance, stating, “The Happy Pay team has delivered impressive growth, leveraging AI and data to drive financial inclusion and generate economic benefits for both consumers and merchants.”

As its ambitious growth plans and demand for flexible payment solutions increase, Happy Pay’s commitment to transparency, affordability, and seamless user experiences places the company at the forefront of innovation in the South African financial market.