EGYPT – Egyptian fintech startup MoneyFellows has announced the first close of its Series B round funding with a US$31 million investment to help it accelerate its growth and move into new markets.
The startup raised a US$4 million Series A round back in 2020, and the US$31 million first close of its Series B was led by CommerzVentures, Middle East Venture Partners (MEVP), and Arzan Venture Capital.
Invenfin, National Investment Company (NIC) and existing investors such as Partech, Sawari Ventures, 4DX Ventures, and P1 Ventures also participated in the round.
“We are proud to share with our stakeholders and our users the progress and growth which led MoneyFellows to become one of the market-leading fintechs in Egypt, facilitating financial inclusion and digital transformation in the country,” said Ahmed Wadi, founder and CEO of Money fellows.
“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.”
MoneyFellows is a mobile-based platform that digitises money circles or Rotating Savings and Credit Associations (ROSCAs), which are widely known as “Gameya” in Egypt and other Arab countries.
Users can effectively manage and plan their financial obligations and achieve their financial goals through the platform, with MoneyFellows offering a secured and convenient alternative to traditional finance that is more social, culturally favorable, affordable, and incentivising.
With hundreds of thousands of monthly active users and a solid 8x year-on-year growth, the company has become one of the favourite financial apps for Egyptians.
The Series B round will allow MoneyFellows to accelerate its exponential growth by diversifying its portfolio of services and expanding its product offerings across the B2C and B2B segments. It also plans geographical expansion across Africa and Asia.
“The support we received from leading local and global venture capital firms in times of instability and scarcity of growth capital rounds is a testament to their faith and confidence in our business model, our team and the overall opportunity that lies in the Egyptian market.”
Hangwi Muambadzi, venture partner at CommerzVentures, said MoneyFellows was already a standout national success story.
“We are incredibly excited to partner with the company as they begin the next phase in their growth journey. Ahmed and his stellar team have delivered a transformative solution that will continue to enable millions to achieve their financial goals,” he said.
“Rotating Savings and Credit Associations have been deeply embedded in emerging markets across the world for centuries.
“It is brilliant to see this new digital ROSCA-driven model emerge from Africa, creating a trusted model of delivering financial solutions and setting a new standard on using localised solutions to solve for global opportunities.”