The round was led by Partech, with additional backing from Futuregrowth Asset Management, 4Di Capital, E4E Africa, Equitable Ventures, and Felix Strategic Investments.

The company plans to use the capital to strengthen partnerships with merchants, grow its presence across both digital and physical retail channels, and enhance its artificial intelligence-driven recommendation and advertising systems.

Founded in 2021 by Wesley Billett, Patrick Postrehovsky, and Mark Geary, Happy Pay provides shoppers with interest-free installment payment options.

The startup says it has already attracted more than 600,000 users. Its model differs from traditional BNPL services by shifting the cost burden away from consumers and onto businesses that benefit from increased sales.

At the core of the platform is an AI-powered engine designed to connect retailers with shoppers who are most likely to buy.

The system delivers tailored offers in real time through the Happy Pay app and partner platforms, with merchants only charged when a transaction is completed.

“Our mission is simple: to make cash-flow management free for consumers,” said Wesley Billett, co-founder and CEO of Happy Pay.

“If we can connect the right product to the right person at the right moment and remove payment friction, commerce itself can fund the flexibility.”

Happy Pay generates revenue by charging merchants for access to its payment infrastructure and targeted advertising capabilities.

According to the company, this approach helps retailers increase conversion rates, boost average order values, and acquire new customers more efficiently.

Billett believes the model challenges how credit has traditionally been structured.

“Credit has previously been monetised through the consumer,” he said. “We’re proving it can be monetised through value creation instead. When merchants grow, consumers shouldn’t have to go into debt to make that happen.”

Investors backing the company see the model as a potential evolution of the BNPL sector, which has faced increasing scrutiny globally over consumer debt risks.

Matthieu Marchand, Principal at Partech, said the firm’s decision to invest was based on the company’s alignment of incentives between consumers and merchants.

“We’ve looked at most Buy Now Pay Later companies across Africa, Europe and the US,” Marchand said.

“The model only works when it delivers genuine affordability for consumers while also helping merchants increase conversions, grow their customer base, and reduce acquisition costs. That’s what Happy Pay is aiming to achieve.”