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

Happy Pay, founded in 2023, provides interest-free and deposit-free credit solutions to its users.

The company leverages AI-driven credit scoring to assess customer affordability quickly, ensuring a seamless checkout experience for both consumers and merchants.

With this new funding, Happy Pay plans to launch innovative products, boost its marketing efforts, and expand its merchant base.

The company also intends to strategically grow its team to support its rapid expansion.

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

Happy Pay has experienced significant growth over the past year, attracting a 900% increase in user growth, primarily driven by millennials and Gen Zs.

The company has been driving growth for South African eCommerce merchants by offering access to new customers, higher average order values, and improved conversion rates.

Patrick Postrehovsky, Co-Founder and COO of Happy Pay, stated that the fintech provides consumers with zero-cost alternatives to high-interest credit, enabling customers to access the formal financial system using their own affordability data.

The BNPL market in South Africa is experiencing rapid growth due to the country’s large population of financially unserved and underserved consumers, increasing eCommerce activity, and challenging economic conditions.

The BNPL payments in the country are expected to reach $1.07 billion this year, with an anticipated annual growth rate of 10.6% from 2024 to 2029.