Egyptian fintech platform MoneyFellows has secured a US$4 million Series A investment to fund its expansion across Africa and various new product launches.
MoneyFellows is a financial enabler that digitises money circles – known as gam’eyas in the Arab world, chit funds in India, committees in Pakistan, tandas in Mexico, and tontine in West and Central Africa.
The platform allows users to more effectively manage and fulfill their financial needs, and currently has more than 150,000 active users that are verified by a user assessment algorithm.
Its US$4 million Series A, which takes MoneyFellows’ total secured investment to US$6 million, was raised from Partech Partners and Sawari Ventures, and will be used to expand the company’s operations nationwide in Egypt as well as further across Africa. MoneyFellows also plans to launch a slew of new products in the coming months.
“Being backed by Partech and Sawari Ventures – two top investment firms – helps us reap global, as well as local, know-how, best practices and support,” founder and chief executive officer (CEO) of MoneyFellows Ahmed Wadi said.
“Partech’s support from their African fund will help us expand into other countries in the continent with hands-on global expertise. While Sawari Ventures have been a cornerstone of Moneyfellows’ journey for the past three years; from day one they have been with us, and bring to the table a cachet of knowledge, alongside a vast network of relationships with key corporates and financial institutions, making them our optimal local partner.”
Partech general partner Cyril Collon said he was proud to have MoneyFellows join his firm’s investment portfolio, and to support the company to scale and expand.
“The team is fantastic and the product sophistication is unique, making money circles attractive for millennials and their grandparents,” he said.
“The impact of MoneyFellows on financial inclusion is already massive in Egypt, as the solution offers convenient secured lending and saving schemes to consumers by digitising a traditional savings model.”
Hany Al Sonbaty, managing partner at Sawari Ventures, said MoneyFellows was one of the most promising fintech companies to come out of the MENA region.
“Their fusion of technology and existing ROSCA culture solves both the problem of financial inclusion and helps people to better plan their personal finances,” he said.
“In enabling people to save beyond their immediate circles, they are not only promoting a culture of saving, but also facilitating a gateway for the further introduction of financial services to larger numbers of people as they become more financially aware. We are thrilled to be investing in the company and joining them on this exciting journey.”