News
Egyptian Fintech Dayra Joins Y Combinator, Secures US $3M in Pre-Seed
Dayra is a Cairo-based fintech startup providing unbanked gig-workers and micro-businesses with financial services. The company has joined Y Combinator’s Winter 21 batch, closing the largest debt and equity Pre-Seed round in MENA and bringing its total funding to $3 million.
Dayra is funded by Tanmiya Capital Ventures, EFG EV Fintech, EFG Hermes, Y Combinator, and multiple prominent angel investors.
Only 30% of 105 million Egyptians are banked, leaving most of the country unbanked and reliant on cash transactions. Requirements such as proof of income by the banking sector make it hard for gig-workers and micro-business owners to open bank accounts. This leads to a lack of transactional data available to banks and micro-finance institutions and to the non-existence of virtual financial identities for the majority of Egyptians, a problem that directly contributes to financial exclusion in Egypt. It also makes it hard for many companies to disburse payments to their contractors, gig-workers, and customers.
With little to no access to credit options, unbanked individuals are left to borrow from traditional micro-lenders known for their large application fees, manual investigations, long processes, and high rejection rates. Others end up borrowing from informal sources at inconsistent and unfair terms.
This is where Dayra comes in; the company was founded in early 2020 by Omar Ekram to improve the lives of millions of unbanked individuals in MENA, starting with Egypt. Dayra empowers companies to provide their unbanked gig-workers and customers with financial solutions via API integrations while taking the payment disbursement hassle off those companies and allowing them to extend their payment terms. Dayra’s financial solutions include virtual bank accounts, prepaid cards, and access to credit – instantly, hassle-free, and at lower costs than traditional lenders.
The company’s typical end-users range from gig workers such as delivery couriers, truck drivers, and freelancers to micro-business owners such as kiosks, small shops, restaurants, and artisans. Analyzing end-user transactions enables Dayra to create alternative credit scores and virtual financial identities for them. Businesses can integrate with Dayra in two ways: they can offer Dayra’s financial solutions directly from within their app using the API integration or, if they don’t have their own app or portal, they can use Dayra’s app directly.
“We are thrilled to be part of YC’s W21 batch and to close our pre-seed round. This is a key milestone in realizing our vision of providing the most accessible financial services solution in MENA and delivering digital financial services to millions of financially excluded individuals, leveraging on our strategic partnership with EFG Hermes,” said Omar Ekram, the founder and CEO of Dayra.
Before starting Dayra, Ekram co-founded the private equity fund Tanmiya Capital Ventures, which participated in Dayra’s Pre-Seed round. Ekram was able to closely observe the inefficiencies of Egypt’s financial services sector and its impact on financial exclusion during his years in the financial services sector. As a self-taught programmer, he built the MVP for Dayra and subsequently landed its first client in March 2020.
Since its launch, Dayra has grown at a monthly growth rate of over 50%. It has allowed thousands of unbanked individuals to access their income early through tens of thousands of transactions worth millions of dollars, with an average loan size of USD 500. Thanks to the trust its partners have placed in the company.
Dayra has received an investment from YC as part of the YC W21 batch. The team has now grown to 10+ individuals, fulfilling operations, BD, product, and tech functions. The company plans on doubling its team members to grow the company and build out new product features.
“We are exceptionally proud to be the first institutional investor partnering with Dayra, in whom we see vast potential due to their disruptive and relevant business model as Egypt works to build financial inclusion and intermediation. Today, EFG Hermes has several key facilities on offer to empower companies with great ideas such as Dayra to come in and fill essential gaps in the market. We have funneled key investment capital in the company through EFG EV Fintech and offered a bespoke, multi-million financing facility through our factoring and leasing arm EFG Hermes CorpSolutions. We are confident that Dayra has the tools in place to make the impact it hopes to see in the market, and we’re proud to be helping them get there,” said Walid Hassouna, CEO of the NBFI Platform at EFG Hermes and Group Head of Debt Capital Markets.
Mahmoud El Zohairy, CEO EFG EV Fintech, also said: “We are thrilled about partnering with Dayra and look forward to seeing them through on a path of success. Dayra’s unique go-to-market approach empowers gig economy participants while alleviating working capital stress on their employers in a seamless manner, something that the market needs right now. Thanks primarily to the world-class team Dayra has put together, including a founder with first-hand knowledge of the financial system as well as deep knowhow in the tech space, we are excited to see what they have in store for the market.”
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
-
Startups9 years ago3 Creative Egyptian Women Who Master E-commerce
-
News9 years ago11 Talented Egyptian Photographers on Instagram
-
Campaigns8 years agoVodafone Egypt Brings Generations Together, Unlocks 4G Power
-
Marketing8 years agoWhich categories will suffer most from increased prices in Egypt?
-
Apps8 years agoRadio Garden Live Map of The Globe’s Radio Stations
-
News8 years agoTop 10 Egyptian Fashionistas to Follow on Instagram
-
Campaigns8 years ago7 Big Stats That Show Which Ramadan Advertisements Resonated Most
-
Opinion8 years agoF*** Being a Founder, Be a Follower