- Dopay, an Egyptian fintech offering digital payroll and payments platform to the unbanked and underbanked workers in emerging markets, has announced the closing of a $13.5 million Series A extension round.
- Argentem Creek Partners led the funding round with participation from other existing investors.
- The fintech plans to leverage the new funding to accelerate its rapid expansion in its initial market, Egypt, and also launch a range of new financial services and expand its multi-bank, multi-country platform to other markets.
Frans van Eerse (CEO) and Roel Van Eersel founded Dopay in 2014 to tackle the issue of unbanked and underbanked populations in emerging markets. Their solution allows employers to make digital cash payments directly to workers and beneficiaries.
With over 60% of Egyptian workers relying primarily on cash, dopay’s mission aligns with the Egyptian Central Bank’s vision of digitisng payments and promoting financial inclusion.
In August, 2021, the startup was awarded a banking agent licence through Arab Banking Corporation Egypt (Bank ABC Egypt). This allowed the company to launch a next generation virtual banking platform, enabling businesses to instantly open accounts for their employees and other beneficiaries and pay them in real-time, in accordance with the guidelines set by the Central Bank of Egypt.
Subsequently, a month after, it closed its $18 million Series A funding round to improve its operations in Egypt and grow its next generation virtual banking platform.
The CEO highlighted that the new funding comes at a crucial moment, coinciding with the rapid growth of fintech. He noted that the funds will help the startup to improve its platform in collaboration with partner banks, and leverage deposited funds to create a self-financing lending model.
He equally acknowledged that “This model will allow deposited amounts to fuel a lending portfolio, fostering a sustainable and mutually beneficial financial ecosystem. Our customers can look forward to new financing products that will be seamlessly embedded into our platform, enhancing their overall experience.”
What’s more, Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners believes a payroll-centric approach is the key to integrating unbanked and underbanked workers in emerging markets into the financial system with the model fostering long-term customer relationships and presents a strong base for cross-selling financial products.
