Egypt fintech startup MoneyFellows nabs $4 million to drive financial inclusion

Egypt fintech startup MoneyFellows nabs $4 million to drive financial inclusion

Published: 26-06-2020 13:18:00 | By: Bob Koigi | hits: 2542 | Tags:

Egyptian fintech startup MoneyFellows has secured $4 million in Series A investment from venture capital firms Partech and Sawari Ventures, as it works towards helping millions of new users reach their financial goals.

MoneyFellows is a financial enabler that digitizes 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.

This allows users to more effectively manage and fulfill their financial needs. The company is 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.

Ahmed Wadi, founder and CEO, MoneyFellows: “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.”

Cyril Collon, General Partner, Partech: “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 digitizing a traditional savings model.”

Hany Al Sonbaty, Managing Partner, Sawari Ventures: "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."