Cairo-based fintech NowPay has raised $2.1 million in a seed spherical co-led by Basis Ventures and Endure Capital, with the participation of traders from america, United Arab Emirates, China, and Egypt, it introduced in a press release to MENAbytes as we speak.
Beco Capital, 500 Startups (MENA), Plug and Play, 4Dx Ventures, MSA Capital, EFG-EV Fintech, and Ebikar, additionally joined the spherical. Some angels together with Quirky Ventures, Gehan Fathi and Rolaco additionally invested within the spherical. The funding brings NowPay’s complete elevate thus far to $2.7 million. It had raised $600,000 (additionally in seed spherical) in 2019.
Based by Mostafa Ashour and Ahmed Sabry, NowPay launched the monetary wellness platform in 2019 to allow corporates to supply wage advances to their staff. The workers of firms that accomplice with NowPay can request their wage (or part of it) at any time of the month via its cell app.
The account needs to be validated by the employer earlier than it may be used to request advances. As soon as the account is accredited, they will additionally see the main points of their wage and the way a lot are they eligible to request as advance. The cell app additionally allows customers to handle and monitor their financial savings, bills, and gives them monetary suggestions. NowPay’s web site says that its answer is Shariah-compliant. For employers, it’s free. The workers, nonetheless, are charged a charge each time they use it.
Mostafa Ashour, the co-founder and CEO of NowPay who beforehand led the innovation groups at Microsoft Analysis advised MENAbytes that their answer is at the moment being utilized by over 70 entities which incorporates a mixture of publicly listed firms, multinationals, and startups. A few of these firms are Domty, MNHD, Sodic, Axa, Trella, Elmenus, and Wuzzuf.
In a press release, Mostafa, stated, “During the peak of Covid-19 lockdowns, we are proud to have well-known and eminent investors back us, signaling trust in our business concept and our team. Saving, spending, budgeting, and borrowing, are our four pillars of financial wellness. Financial stress plays a major role as a top distraction for employees. NowPay bridges that gap and provides several benefits for employers that choose to proactively address this area of employee wellness.”
“Within a very short period, we are delighted to have managed salaries in excess of US$100 million with a 60 percent month-over-month growth rate,” he added.
The answer provided by NowPay helps employers enhance worker happiness, productiveness, and company loyalty, with none adjustments of their cash circulation as the cash is obtainable by NowPay. For employers, it’s just about enterprise as normal. They’re solely imagined to deduct the loan quantities and charge from the wage on the finish of the month (or at any time when they pay the salaries) and pay it to NowPay immediately.
Ziyad Hamdy, Managing Companion at Basis Ventures, a newly established Cairo-based VC, commenting on the funding, stated, “There is an asymmetry between expenses and income, which puts a lot of stress on employee’s morale, and hampers productivity. We are thrilled to join NowPay’s incredible team on this journey of empowering employees with the happiness and wellness that financial stability provides.”
Tarek Fahim, Managing Companion at Endure Capital, stated, “Not every day you have both clear product-market fit and founders market fit. That’s what they have at NowPay. Just attend any business meeting with the team and you will know it immediately.”
NowPay plans to make use of the newest funds to ‘deepen the capabilities’ of its platform, develop its group, and probably launch in another markets (within the area and past). The startup didn’t share the main points in regards to the markets it’s eyeing for growth. There are another gamers that additionally providing comparable providers within the area, together with FlexxPay and Bayzat.
Zubair Naeem Paracha
Founder at MENAbytes
A tech and startup fanatic primarily based in Lahore, Pakistan. Zubair other than main MENAbytes can be constructing Qraar, a profession discovery and growth platform for millennials in MENA. He may be reached on Linkedin, Twitter or zubair [at] menabytes [dot] com. Newest posts by Zubair Naeem Paracha (see all)