MoneyFellows, an Egyptian fintech startup, has successfully raised $13 million in a pre-Series C funding round led by Al Mada Ventures and DPI’s Nclude Fund. This latest investment brings the company’s total funding to over $60 million and marks a significant step toward its regional expansion plans.
Founded in 2016 by CEO Ahmed Wadi, MoneyFellows digitizes the traditional Rotating Savings and Credit Association (ROSCA) model, known locally as gameya. This system involves a group of individuals contributing a fixed amount regularly into a common pool, with each member receiving the total sum in rotation. By bringing this practice online, MoneyFellows has broadened access and enhanced scalability, allowing users across Egypt to participate in these savings circles through its mobile application.
Unlike many digital lenders that rely heavily on working capital, MoneyFellows has managed to lend billions of Egyptian pounds without significant debt or balance sheet exposure. The platform achieves this by matching savers, who typically opt for later payout slots, with borrowers preferring earlier slots. This matching process is facilitated using behavioral data, credit scores, and income tiers, enabling the company to scale efficiently without lending from its own balance sheet. In instances where a savings circle lacks a full roster, MoneyFellows may finance the missing slot to ensure the group’s activation and continuity.
The recent funding round also saw participation from Partech Africa and CommerzVentures, underscoring investor confidence in MoneyFellows’ innovative approach and its potential for growth beyond Egypt. The company plans to utilize the new capital to diversify its service offerings and expand into other markets across Africa and Asia.
MoneyFellows’ success highlights the viability of digitizing traditional financial practices to enhance financial inclusion and accessibility. By leveraging technology to modernize the ROSCA model, the company provides a secure and convenient alternative to conventional banking systems, catering to a culturally familiar and socially engaging method of saving and borrowing.
As MoneyFellows embarks on this new phase of growth, it aims to replicate its success in Egypt by introducing its digital savings model to other emerging markets, thereby fostering greater financial inclusion and empowerment on a broader scale.
