Cairo-based fintech startup NowPay has raised a US$2.1 million seed funding round to deepen the capabilities of its platform, expand its team, and establish its footprint in the MENA region and beyond.
Founded in 2019, NowPay is a financial wellness platform for emerging markets, which allows employees to access their salary at any point during the month.
The startup, which raised US$600,000 in seed investment last year, has now taken on more investment as it looks to scale its platform and its geographical footprint. The US$2.1 million round is led by Foundation Ventures and Endure Capital, and also includes the likes of BECO Capital, 500 Startups, Plug and Play, 4dx Ventures, MSA Capital, EFG-EV Fintech and Ebtikar.
Prominent angel investors such as Quirky Ventures, Gehan Fathi, and Rolaco also participated in the round, which came in spite of the COVID-19 pandemic.
“We are proud to have well-known and eminent investors back us, signaling trust in our business concept and our team. Saving, spending, budgeting and borrowing, are our four pillars of financial wellness. Financial stress plays a major role as a top distraction for employees. NowPay bridges that gap and provides several benefits for employers that choose to proactively address this area of employee wellness,” said Mostafa Ashour, co-founder and chief executive officer (CEO) of NowPay.
“Particularly in the recent months NowPay helped empower both the employees and employers alike. We want to improve every financial aspect for employees and make financial inclusion a reality.”
The startup has so far managed salaries in excess of US$100 million, with a 60 per cent month-on-month growth rate, and integrated our platform with leading Egyptian and multinational names such as SODIC, Wadi Degla, Domty and AXA. Ashour said this was testament to NowPay’s ability to help the financial wellness of employees for its clients.
“We have a very strong pipeline with many more big names waiting to onboard our platform and we look forward to forge ahead as pioneers in this space,” he said.
Ziyad Hamdy, managing partner at Foundation Ventures, said there was an asymmetry between expenses and income, which puts a lot of stress on employee’s morale, and hampers productivity.
“We are thrilled to join NowPay’s incredible team on this journey of empowering employees with the happiness and wellness that financial stability provides,” he said.