MoneyFellows, an Egyptian FinTech startup, has raised $31 million in its latest round of funding. The round led by CommerzVentures, Sawari Ventures, Middle East Venture Partners (MEVP), amongst others, is the third-largest raise by a FinTech company and the fourth-biggest funding round in Egypt in 2022.
MoneyFellows, with its newly gained funds, plans to speed up its exponential growth by diversifying its portfolio of services and expanding its product offerings across the B2C & B2B segments. It would also help the FinTech company, operating only in Egypt, to expand to Saudi Arabia and Pakistan and support the company’s vision of being the leading financial platform in the Middle East and Africa by 2025.
FinTechs in Africa have, by a wide margin, dominated the continent’s tech ecosystem in terms of investment. The niche gained 63% or $3 billion of the funding that went to African startups in 2021. And according to a report from TechCabal’s funding tracker, FinTechs are still putting on a good show in 2022, seeing that they have attracted fundings over $660 million (June 2022).
- This growth is because users are finding digital finance solutions more convenient and cheaper when seeking loans, making purchases, paying bills and managing expenses compared to financial services offered by local banks.
- Reports have shown that the revenues of FinTech companies in Africa could grow as high as eight times to $30 billion by 2025.
What you should know about Moneyfellows services
MoneyFellows is a digital platform that creates “money circles”, known in the region as gameya, and uses a scoring model to offer peer-to-peer, no-interest lending.
The members of each money circle created by Moneyfellows commit to these digitised circles by paying an installment into a pool every month, with a unique member taking the total contribution as a payout each month. Moneyfellows says it has hundreds of thousands of monthly users and has seen 8x year on year growth.