Fintech
Fintech startup dopay raises $13.5 million to expand digital payroll platform for emerging markets
dopay, a fast-growing financial technology (fintech) company, has secured $13.5 million in an extension of its Series A funding round. The company provides a digital payment and payroll platform for unbanked and underbanked workers in emerging markets.
This funding milestone is a significant step forward in dopay’s mission to transform cash-based economies. The aim is to achieve this by digitizing payments and promoting financial inclusion for millions of workers.
The innovative virtual banking platform dopay enables employers to make digital money payments to employees and beneficiaries.
This addresses a major fintech opportunity in emerging markets. The Series A extension round was led by Argentem Creek Partners with participation from existing investors. The funds will be used to accelerate dopay’s expansion in its initial market, Egypt. Additionally, the company plans to launch new financial services and expand its multi-bank, multi-country platform to additional markets.
Investors are confident in dopay’s approach. Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, commented on the potential for integrating unbanked workers into the financial system through payroll. He believes dopay’s model fosters long-term relationships with clients and provides a solid foundation for offering additional financial products.
Investor and dopay Board Member Kaj-Erik Relander highlighted the significant opportunity presented by dopay’s large underbanked population and robust platform. He reiterated his support for dopay’s mission to revolutionize financial services in emerging markets.
Frans van Eersel, founder and CEO of dopay, said that the funding comes at a critical time as the company is experiencing rapid growth. The new funds will be used to enhance their platform and create a self-funded lending model in collaboration with partner banks. This model will use deposited funds to fuel a loan portfolio, promoting a sustainable financial ecosystem. Customers can expect new financing products seamlessly integrated into the platform, improving their overall experience.
Ahmed Nassef, COO of dopay, highlighted that Egypt is a microcosm of the global opportunity for financial inclusion. With over 60% of Egyptian workers relying primarily on cash, dopay’s mission aligns with the Central Bank of Egypt’s vision to digitize payments and promote financial inclusion. By addressing the fundamental issue of efficient and timely payroll payments, dopay aims to transform the payroll landscape and contribute to Egypt’s broader economic development. Their success in Egypt will serve as a model for expansion into other emerging markets, showcasing the transformative power of their digital payroll solutions.