MENA Fintech Hubpay Raises $20 Million to Launch Cross-Border E-Wallet
The influx of new capital will be funneled into hiring talent and catapulting the startup’s expansion to new international markets, namely Asia and Africa over the course of this year.
It’s no secret that financial inclusion is a key driver of MENA’s burgeoning fintech sector. The latest market player to secure a considerable investment is UAE’s Hubpay with its recent $20 million funding round. The UAE’s first licensed digital money service provider raised a Series A round led by U.S-based Signal Peaking - the firm’s first investment in the GCC. The round also saw participation from Olive Tree Capital, BECO Capital as well as a handful of early-stage investors Stormbreaker, Emkan Capital, and Aditum. The influx of new capital will be funneled into hiring talent and catapulting the startup’s expansion to new international markets, namely Asia and Africa over the course of this year.
Since its founding in 2019, the e-wallet has gone off to open offices in Dubai, Abu Dhabi, Karachi and London. This fundraise will help the startup venture into uncharted territory with the launch of its cross-border, free remittances digital wallet, inching the region closer to a more unified, cashless and financially inclusive future where decentralized financial networks take the main stage.
The company currently has a number of diverse financial products and solutions in the works, says founder and CEO, Kevin Kilty. “A wave of new digital regulatory regimes has been launched, enabling businesses like Hubpay to offer fully digital solutions to underbanked users. Key ecosystem building blocks, such as digital KYC and the ubiquity of smartphones, have created a landscape to drive the largest financial inclusion trends that we’ve seen since Alipay was launched in China.”
Financial inclusion is the cornerstone of Hubpay’s mission and comes as part of the startup’s broader focus on the UN SDGs. The UN mandated for global remittances to cost under 3 percent and Hubpay has managed to drop that cost to zero, in an attempt to enhance the socio-economic status of women who are disproportionately impacted by remittance flows. As Hubpay continues to expand its product portfolio and market presence in 2022, the startup will develop financial tools tailored to remittance receivers that tackle challenges associated with financing and even insurance.
