Money Fellows, a leading Egyptian fintech platform, has succeeded in raising EGP 696 million (USD 31 million) in a Series B funding round on 30 October 2022. This is an impressive leap from its previous Series A funding round which raised EGP 63 million (USD 4 million) in 2020.
Founded in 2016 by its Chief Executive Officer Ahmed Wadi, Money Fellows is a mobile application that digitizes the concept of ‘money circles’, colloquially known as a gam’eya (union) in Egypt – a popular method of saving money in which a number of individuals form a group and deposit a set amount on a monthly basis.
In essence, if an individual is looking to save up EGP 100,000 over 10 months, the application places them in a group of 10 individuals that deposit EGP 10,000 each on a monthly basis. Each month, a different group member collects the collective EGP 100,000 until the cycle ends or is restarted.
“We are proud to share with our stakeholders and our users the progress and growth which led Money Fellows to become one of the market-leading fintech’s in Egypt, facilitating financial inclusion and digital transformation in the country,” explained Wadi in a press release.
Wadi goes on to acknowledge the impact and support of the company’s network of investors, which included the likes of CommerzVentures, Middle East Venture Partners (MEVP), and Arzan Venture Capital during this round of funding. Additionally, Invenfin, National Investment Company (NIC), as well as existing investors such as Partech, Sawari Ventures, 4DX, and P1 Ventures also participated in the round.
Egypt’s gam’eya savings strategy is a popular mechanism, meant to motivate groups to save money. Over the years, however, the concept has lost credibility due to fraudulent groups and cases of individuals not depositing their monthly dues on time.
“Each user has to sign a legally binding contract after going through our credit assessment to make sure that all users can pay their installments. In case other users fail to pay their due amounts, Money Fellows covers their share to make sure you get your full payout,” explains the app on its ‘Frequently Asked’ page.
The platform currently has over two million users, providing in-app ‘goals’ – marriage, vacation, saving up for a phone, and more – based on each user’s financial goals.
Money Fellows aims to utilize its new funding to support its mission to become Egypt’s leading financial platform in the Middle East and Africa by 2025.
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