Egyptian fintech startup MoneyFellows raises $31 million in Series B first round

Egyptian fintech startup MoneyFellows has announced the first close of its Series B round of funding with an investment of US$31 million to help it accelerate growth and move into new markets.

MoneyFellows is a mobile-based platform that digitizes money circles or Rotating Savings and Credit Associations (ROSCA), which is 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 secure and convenient alternative to traditional finance that is more social, culturally beneficial, affordable and stimulating.

The startup raised a Series A round of USD 4 million back in 2020, and the first US$31 million Series B close 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.

With hundreds of thousands of monthly active users and a solid 8x year-over-year growth, the company has become one of the favorite 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 geographic expansion across Africa and Asia.

“We are proud to share with our stakeholders and our users the progress and growth that led MoneyFellows to become one of the market-leading fintechs in Egypt, facilitating financial inclusion and digital transformation in the country. We would not have reached such an important funding milestone without the solid support of our existing investors who understand and support the company’s vision as well as the tenacity and faith of our new partners in the company and the team’s ability to execute, said Ahmed Wadi, Founder and CEO of Money fellows .

“The support we received from leading local and global venture capital firms during times of instability and scarcity of growth capital rounds is a testament to their faith and trust 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 prominent national success story.

“We are incredibly excited to partner with the company as they begin the next phase of their growth journey. Ahmed and his amazing team have delivered a transformative solution that will continue to enable millions to reach their financial goals. Revolving Savings and Credit Unions have been deeply rooted in emerging markets worldwide for centuries, it is brilliant to see this new digital ROSCA-powered model emerging from Africa, creating a trusted model for delivering financial solutions and setting a new standard for the use of localized solutions to solve global opportunities,” he said.