Egyptian Fintech agency MoneyFellows has secured $four million in capital by a Sequence A spherical from Paris-based international VC firm Partech and Sawari Ventures, a global VC investor.
The funding has come after MoneyFellows acquired greater than $1 million in funding through a pre-series A spherical, which included participation from 500 Startups, Dubai Angel Buyers, and Phoenician Fund.
Established in 2016 by Ahmed Wadi, MoneyFellows has digitized the idea of cash circles (ROSCAs) by its on-line platform (ROSCAs are known as gam’eya in Arab-speaking international locations).
This apply is adopted by people who find themselves making an attempt to economize. Family and friends members often make fastened month-to-month funds every month to a pool of funds. One member is chosen each month to take the entire pool of cash as a one-time payout – which often helps them pay for some main expense. The circle ends when all members have obtained their payouts after which it’s typically repeated in order that contributors can proceed to higher handle their budgets and funds.
MoneyFellows presents a mobile-based platform that has absolutely digitized this course of. The app comes with a scoring model that works alongside the offline model, thus making the method extra scalable, safe, and environment friendly.
The Cairo-based Fintech firm’s administration claims they at present have greater than 150,000 lively customers who’ve been verified by a consumer evaluation algorithm. MoneyFellows additionally works with a number of company shoppers in Egypt. The agency assists staff of Egyptian companies by offering a safe manner for them to participate in these cash circles or ROSCAs.
Ahmed Wadi, founder and CEO at MoneyFellows, said:
“[The funding from] Partech and Sawari Ventures … [should] assist us reap international, in addition to native know-how, finest practices and help.“
MoneyFellows is a 2016 Flat6Labs Cairo graduate, which is a number one Egyptian startup accelerator.
Cyril Collon, basic accomplice at Partech, famous:
“The impact of MoneyFellows on financial inclusion is [significant] in Egypt, as the solution offers convenient secured lending and saving schemes to consumers by digitizing a traditional savings model.”
Hany Al Sonbaty, managing accomplice at Sawari Ventures, remarked:
“MoneyFellows’ … fusion of technology and existing ROSCA culture solves both the problem of financial inclusion and helps people to better plan their personal finances.”