Fintech
Egyptian Fintech Dopay Raises $13.5M Series A Extension Round to Enhance Offerings and Accelerate Expansion
- Dopay, an Egyptian fintech that offers a digital payments and payroll platform to unbanked and underbanked workers in emerging markets, has announced the closing of a $13.5 million Series A extension round.
- Argentem Creek Partners led the funding round with participation from other existing investors.
- The fintech plans to leverage the new funding to accelerate its rapid expansion in its initial market, Egypt, as well as launch a range of new financial services and expand its multi-bank, multi-country platform to other markets.
Frans van Eerse (CEO) and Roel Van Eersel founded Dopay in 2014 to address the problem of unbanked and underbanked populations in emerging markets. Their solution enables employers to make digital money payments directly to workers and beneficiaries.
With over 60% Egyptian workers relying on mostly in cash, dopay’s mission aligns with the Egyptian The Central Bank’s vision to digitize payments and promote financial inclusion.
In August 2021, the startup was assigned a banking agent license through Arab Banking Corporation Egypt (Bank ABC Egypt). This has enabled the company to launch a next-generation virtual banking platform, allowing companies to instantly open accounts for their employees and other beneficiaries and pay them in real time, in accordance with the guidelines set by the Central Bank of Egypt.
Subsequently, a month later, Closed its $18 million Series A funding round to enhance its operations in Egypt and develop its next-generation virtual banking platform.
The CEO noted that the new funding comes at a crucial time, coinciding with the fintech’s rapid growth. He noted that the funds will help the startup improve its platform in collaboration with partner banks and leverage the deposited funds to create a self-funded lending model.
He also acknowledged that “This model will allow deposited amounts to feed a loan portfolio, promoting a sustainable and mutually beneficial financial system. ecosystemOur customers can expect new financial products that will be seamlessly integrated into our platform, enhancing their overall experience.”
Additionally, Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, believes that a compensation-centric approach is key to integrating unbanked and underbanked workers in emerging markets into the financial system, with a model that fosters long-term relationships with clients and provides a solid foundation for cross-selling financial products.
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