The investment aims to scale the userbase of the platform, streamlining of operations and exploring expansion opportunities.
Cairo-based fin-tech startup, MoneyFellows, has raised over $1 million in a Pre-Series A Round, as reported by MENAbytes. The investment round was led by 500 Startups and Dubai Angel Investors, both of whom had previously invested in the company’s seed round last year. The investment aims to scale the userbase of the platform, streamlining of operations and explore expansion opportunities.
In addition to the investment, the startup has also secured corporate deals with a variety of companies in Egypt in order to facilitate participation of their employees in money circles. MoneyFellows had partnered up with different financial institutions, including point-of-sale (POS) payment provider Fawry to make it easier for its users to pay their monthly installments and receive payouts at Fawry’s 80,000+ POS devices located all around Egypt. MoneyFellows’ group-pooling platform for credit and savings is digitising the entire process of money circles, also known as Gam’eya in the Arabic-speaking region, with a scoring model that compliments the current offline model, making it safer and more efficient.
Speaking of their expansion plans, Ahmed Wadi, founder and CEO of MoneyFellows declared that the startup plans to expand to neighboring countries in the MENA by 2020 after closing their Series A, and also plans to expand into African countries by 2021, as there is high-demand and participation in offline money circle schemes. The startup is currently in advanced discussions with many key financial and telecommunication players in MENA to work on the potentiality of expansion there.
“We will dedicate the money from this bridge round to raise greater awareness for MoneyFellows, in order to allow a much greater number of users to access our application and meet their saving and financial needs,” states Wadi.
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