Egypt-based MoneyFellows, has secured a $4 million Series A investment from venture capital firms Partech and Sawari Ventures.
Founded in 2016 by Ahmed Wadi, the financial technology (fintech) startup digitises the prevalent practice of gam’ia or rotating savings and credit association (ROSCA), helping individuals and groups effectively manage their finances and savings.
The startup plans to use the funds to expand its operations across the African continent, scale its business and boost its financial offerings.
“Partech’s support from their African fund will help us expand into other countries in the continent with hands-on global expertise. While Sawari Ventures have been a cornerstone of Moneyfellows’ journey for the past three years,” said Wadi, founder and CEO of MoneyFellows.
Cyril Collon, general partner at Partech said: “The impact of MoneyFellows on financial inclusion is already massive in Egypt, as the solution offers convenient secured lending and saving schemes to consumers by digitising a traditional savings model.”
Currently, MoneyFellows has more than 150,000 active users.
"MoneyFellows is one of the most promising fintech companies to come out of the region; their fusion of technology and existing ROSCA culture solves both the problem of financial inclusion and helps people to better plan their personal finances,” said Hany Al Sonbaty, managing partner at Sawari Ventures. “In enabling people to save beyond their immediate circles, they are not only promoting a culture of saving, but also facilitating a gateway for the further introduction of financial services to larger numbers of people as they become more financially aware. We are thrilled to be investing in the company and joining them on this exciting journey."