Happy Pay, South African BNPL provider raises $1.8m

By Gloria Methri

Happy Pay, South Africa’s Buy Now, Pay Later (BNPL) provider, has raised $1.8 million in pre-seed funding. The funding round was led by a group of venture capital investors, including E4E Africa and 4Di Capital, with participation from DotExe Ventures, Launch Africa, Equitable Ventures, Felix Strategic Investment, US-based Gaingels, and local angels. In addition, Fin Africa (formerly Finclusion Group) is providing Happy Pay’s debt facility.

Happy Pay’s forward-compliant BNPL platform, designed to meet evolving regulatory standards, offers consumers a one-click checkout solution and the ability to split their purchases over two paychecks, interest—and deposit-free. The platform leverages autonomous AI-driven credit scoring to calculate customer affordability in seconds.

“We are excited to have the backing of such a remarkable group of investors,” said Wesley Billett, Co-Founder and CEO at Happy Pay. “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.”

Launched in 2023, Happy Pay has experienced rapid growth over the past year, attracting a 900% increase in user growth. The surge in interest and development of the platform is primarily driven by Millennials and Gen Zs, who are favouring BNPL options over traditional credit cards.

“We have been enabling growth for South African merchants within the e-commerce sales channel by giving them access to new customers, bigger average basket sizes, and better conversion metrics—all while providing South African consumers with zero-cost alternatives to high-interest credit. Our focus on financial inclusion has allowed thin-file consumers to gain access to the formal financial ecosystem via their affordability data,” added Patrick Postrehovsky, Co-Founder and COO at Happy Pay.

The pre-seed funding will be used to launch several innovative products, ramp up marketing, and expand Happy Pay’s merchant base. The company also plans to add to its team while focusing on efficient growth strategically.

As South Africa’s independent BNPL provider, Happy Pay aims to empower African consumers by offering zero-cost installment payments, promoting credit score improvement, and providing equitable access to financial services.