Egyptian fintech startup Dopay has closed a US$13.5 million Series A extension round, topping up its $18 million Series A round raised in 2021, and will now set about accelerating its expansion in its home market as well as new ones.
Founded in 2014 by Frans van Eersel and Ahmed Nassef, Dopay offers a virtual banking platform that digitises cash payments from employers to workers and other beneficiaries.
Its Series A extension round of funding was led by Argentem Creek Partners with participation from existing investors, and will enable Dopay to accelerate its rapid expansion in Egypt, as well as launch a range of new financial services and expand its multi-bank, multi-country platform to other markets.
“This funding comes at a pivotal moment, with our growth exhibiting a true hockey stick trajectory. The new funds will help us elevate our platform and, in collaboration with our partner banks, leverage deposited funds to create a self-financing lending model. 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,” van Eersel said.
Maarten Terlouw, co-chief investment Officer at Argentem Creek Partners, said he believed a payroll-centric approach was the key to integrating unbanked and underbanked workers in emerging markets into the financial system.
“This model fosters long-term customer relationships and presents a strong base for cross-selling financial products such as earned wage access, personal loans, credit cards, business loans, insurance, savings, investments, and more. We are impressed by Dopay’s multi-bank, multi-country platform and are excited to support the company in its next growth stage. We look forward to working closely together with Dopay’s talented team,” he said.
