South African startup Flood has raised $2.5 million in seed funding to accelerate its mission of bringing offline commerce into the digital economy across emerging markets.
The round was backed by Founders Factory Africa, Accion Venture Lab, LoftyInc Capital Management, and angel investors, reflecting growing investor appetite for fintech solutions targeting the informal economy.
Flood was founded to solve a critical challenge across Africa and other developing regions: the dominance of offline, cash-based commerce that leaves millions of small businesses outside the digital economy. The startup’s platform integrates digital payments, business management tools, and credit solutions, empowering informal retailers to streamline transactions, track sales, and access financial services.
“Offline commerce powers most of Africa’s economy, but it’s been left behind in the digital transformation,” said the CEO of Flood. “Our goal is to bridge that gap, enabling merchants to operate with the same digital efficiency as their online counterparts.”
With the new funding, Flood plans to expand its merchant network in South Africa, while also preparing to launch in other high-growth markets across sub-Saharan Africa and Asia. The company will enhance its technology to support AI-powered analytics, helping retailers make smarter business decisions and access tailored financial products.
The startup also aims to deepen partnerships with banks, mobile money operators, and FMCG distributors, creating a one-stop ecosystem for merchants operating offline.
Commenting on the raise, Accion Venture Lab said:
“Flood is tackling one of the most pressing gaps in emerging markets – the digital exclusion of small merchants. By bringing them into the formal economy, Flood is unlocking growth, financial access, and resilience.”
Flood joins a growing wave of African retail-tech and fintech startups targeting the informal trade sector, which represents more than 60% of Africa’s retail economy. With millions of micro and small merchants underserved by traditional banking, platforms like Flood are increasingly seen as critical to driving financial inclusion and digital adoption at scale.
With a $2.5M seed raise, Flood is positioning itself as a key player in digitizing offline commerce, enabling informal merchants to thrive in the digital economy across Africa and beyond.
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