Cairo-based fintech startup Money Fellows has raised $31M in its Series B round led by CommerzVentures, Middle East Venture Partners (MEVP), and Arzan Venture Capital.
Founded in late 2016 by Ahmed Wadi, Money Fellows has digitized the concept of money circles (ROSCAs), commonly known as “Gam’eya” in Egypt and other Arab countries, through its online platform.
The practice that is very popular for saving money in different parts of the world allows a group of people (who usually are friends or colleagues) to contribute a fixed installment every month to a pool, with one of the members taking the whole pool as payout every month. The circle ends when everyone receives their payout and is usually repeated if the participants are interested.
With its mobile-based platform, Money Fellows has digitized this process with a scoring model that compliments the offline model, making it more scalable, safe, and efficient.
Users can effectively manage and plan their financial obligations and achieve their financial goals through the platform. The startup offers a secure and convenient alternative to traditional finance that is more social, culturally favorable, affordable, and incentivizing.
“We are proud to share with our stakeholders and users the progress and growth which led Money Fellows to become one of the market-leading FinTechs in Egypt, facilitating financial inclusion and digital transformation in the country. We wouldn’t have reached such an important funding milestone without the firm backing of our existing investors who understand and support the company’s vision as well as the perseverance and belief of our new partners in the company and the team’s ability to execute,” said Ahmed Wadi.
The raised fund will allow Money Fellows to accelerate its exponential growth by diversifying its portfolio of services and expanding its product offerings across the B2C & B2B segments, as well as its geographical expansion across Africa and Asia.
Middle East Venture Partners, Arzan Venture Capital, Invenfin, National Investment Co., and existing investors such as Partech, Sawari Ventures, 4DX, and P1Ventures, have also participated in the funding round.
“What an inspiring journey Money Fellows have gone through! We have followed the company since its launch and are impressed by what Ahmed and his team have achieved. Their ability to crack such a difficult model enables them to provide a highly recurring and sticky financing option to a largely untapped and underbanked population. Money Fellows is on track to become the go-to platform for financial services in emerging markets. We are very excited to become part of the company’s journey,” concluded Jad El Boustani, Managing Director, and Germine Bouchnack, Associate and Egypt’s Operations Manager at MEVP.