Egypt’s MoneyFellows secures US$4m to expand
Egyptian Fintech platform MoneyFellows has secured US$4-million in Series A investment from venture capital firms Partech Ventures and Sawari Ventures.
The Fintech firm plans to use the investment to expand within Africa and also launch new solutions.
MoneyFellows is a financial enabler that digitises money circles or ROSCA (known as gam’eyas in the Arab world, chit funds in India, committee in Pakistan, Tandas in Mexico, and tontine in West and Central Africa).
The company is described as a first-mover in supporting the financial inclusion and digital transformation mandate of the Egyptian government and Central Bank of Egypt.
Currently, MoneyFellows has more than 150,000 active users that are verified by a user assessment algorithm. The investment will be used to expand the company’s operations nationwide in Egypt as well as further across Africa. The company also plans to launch a slew of new products in the coming months.
Founder and CEO of MoneyFellows Ahmed Wadi said, “Being backed by Partech and Sawari Ventures - two top investment firms, helps us reap global, as well as local know-how, best practices and support. Partech’s support from their African fund will help us expand into other countries in the continent with hands-on global expertise. While Sawari Ventures have been a cornerstone of Moneyfellows’ journey for the past three years; from day one they have been with us, and bring to the table a cachet of knowledge, alongside a vast network of relationships with key corporates and financial institutions, making them our optimal local partner.”
General Partner at Partech Cyril Collon added, “We are proud to have MoneyFellows join Partech’s investment portfolio to support the company to scale and expand. The team is fantastic and the product sophistication is unique, making money circles attractive for millennials and their grandparents. The impact of MoneyFellows on financial inclusion is already massive in Egypt, as the solution offers convenient secured lending and saving schemes to consumers by digitising a traditional savings model.”
Managing Partner at Sawari Ventures Hany Al Sonbaty said, "MoneyFellows is one of the most promising Fintech companies to come out of the region; their fusion of technology and existing ROSCA culture solves both the problem of financial inclusion and helps people to better plan their personal finances. In enabling people to save beyond their immediate circles, they are not only promoting a culture of saving, but also facilitating a gateway for the further introduction of financial services to larger numbers of people as they become more financially aware. We are thrilled to be investing in the company and joining them on this exciting journey."
In April 2020 ITWeb Africa reported that Egyptian business funders are continuously looking to empower local Fintech companies and tech start-ups to better respond to disruption caused by COVID-19.
The Oxford Business Group (OBG) believed tech start-ups can help.
An excerpt from a report released by the organisation on 20 April 2020 reads: “Egypt’s digital start-ups are in a good position to respond to the pandemic. According to a January 2020 report from data platform MAGNiTT, Egypt was responsible for the highest number of start-up financing deals in the MENA region last year, with 141 deals (25% of the total) attracting $98.6m in funds.”