Egypt-focused B2B2C payments platform dopay has secured US$18 million in a Series A funding round, the company announced in a statement last week. The company is based out of London and currently caters to its initial market Egypt.
Force Over Mass Capital, FMO and NN Group led the round. Meanwhile, participating investors included Mbuyu Capital and Alder Tree Investments.
Funding will be used to scale in Egypt, and also build a suite of financial services to top the company’s currently available cashless payroll and prepaid employee cards. The company also has plans to expand across the MENA region.
The company’s virtual banking platform helps to digitise cash payments from employers to workers. It recently received a banking agent licence from Bank ABC Egypt last month. The company’s clients include Swvl, Landbank and McDonald’s.
“The value of our Series A funding confirms the investment community’s confidence in the dopay offer. Our commercial validity through our B2B2C model is clear, and our technology capability is proven and strong. Egypt is the biggest market in the MENA region. We will serve a rapidly growing number of Egyptian businesses, from SMEs to major corporations, and their employees,”
Frans van Eersel, Founder and CEO of dopay, said in the statement.
Demand for cashless fintech companies such as dopay
Egypt has been moving towards a cashless economy in a bid to increase financial inclusion in the country. The statement noted that there was a “strong and growing demand” for cashless payroll, and digital banking and payments from businesses and employees.
According to the Egyptian Cabinet’s Information and Decision Support Centre, the country is on track to achieving this goal, Egypt Independent reported. Initiatives to digitise cash transactions and a digital economy include the establishment of a financial inclusion unit and National Payments Council, issuance of mobile payment laws and a draft e-commerce law, and support for SMEs.
The paytech sector in Egypt currently features 9 banks, 39 insurance companies, over 900 micro finance companies and NGOs, and more than 50 fintech companies.
Other fintech startups in Egypt working to digitise SME financial services in Egypt include Dayra and Paymob.
Featured image credit: dopay