Happy Pay, a buy now pay later startup, has raised $5 million in seed funding to scale what it describes as Africa’s first ad supported payments network. The round was led by Partech, with participation from Futuregrowth Asset Management, 4Di Capital, E4E Africa, Equitable Ventures, and Felix Strategic Investments, as the company looks to deepen its footprint in Africa’s growing digital payments space.
The company said the new funding will be used to strengthen merchant partnerships, expand across both online and offline channels, and enhance its artificial intelligence driven recommendation and advertising engine. Founded in 2021, Happy Pay offers interest free installment payments and has grown its user base to over 600,000, positioning itself as an alternative to traditional credit systems.
Operating within a rapidly expanding market, the startup is tapping into increasing demand for flexible payment options in South Africa, where buy now pay later adoption continues to rise across retail and e commerce. Industry data shows growing consumer reliance on installment payments as living costs increase, with transaction values climbing steadily in recent years.
Happy Pay’s model shifts the cost of credit away from consumers by using an ad subsidised structure, where merchants and brands fund the service in exchange for higher sales and targeted customer acquisition. Backed by an AI powered engine that connects products with high intent shoppers, the company aims to drive both affordability for users and growth for merchants, as it positions itself at the intersection of payments, advertising, and digital commerce.