Egyptian fintech startup Dopay secures $13.5 million in Series A extension round

Egyptian fintech startup Dopay has closed a $13.5 million Series A extension round, adding $18 million to its Series A round raised in 2021. The company will now look to accelerate its expansion in its home market as well as new markets.

Founded in 2014 by Frans van Eersel and Ahmed Nassef, Dopay provides a virtual banking platform that digitizes cash payments from employers to employees and other beneficiaries.

The Series A funding round was led by Argentem Creek Partners with participation from existing investors and will enable Dopay to accelerate its rapid expansion in Egypt, launch a range of new financial services and extend its multi-bank and multi-country platform to other markets.

“This financing comes at a crucial time as our growth is taking off. The new funds will help us to expand our platform and, in collaboration with our partner banks, use deposited funds to create a self-funding loan model. This model will allow deposited amounts to be put into a loan portfolio, thus fostering a sustainable and mutually beneficial financial ecosystem. Our customers can look forward to new financing products that will be seamlessly integrated into our platform and improve their overall experience,” said van Eersel.

Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, believes that a wage- and salary-based approach is key to integrating workers in emerging markets with no or limited access to banking services into the financial system.

“This model fosters long-term customer relationships and provides a strong foundation for cross-selling financial products such as access to earned wages, personal loans, credit cards, business loans, insurance, savings, investments and more. We are impressed with Dopay’s multi-bank and multi-country platform and are excited to support the company in its next phase of growth. We look forward to working closely with Dopay’s talented team,” he said.