Egyptian fintech startup, DoPay, has announced the closing of a strategic $13.5 million Series A extension round.
The startup, which provides a digital payroll and payments platform serving unbanked and underbanked workers in emerging markets, previously raised a $18 million Series A funding round.
With over 60% of Egyptian workers relying primarily on cash, DoPay’s mission aligns with the Egyptian Central Bank’s vision of digitisng payments and promoting financial inclusion.
Dopay, part of Hub71, Abu Dhabi’s global tech ecosystem, further describes itself as an innovative virtual banking platform that digitises cash payments from employers to workers and other beneficiaries, directly tackling one of the most significant fintech opportunities in emerging markets.
The Series A extension funding, led by Argentem Creek Partners with participation from existing investors, will enable DoPay to accelerate its rapid expansion in its initial market, Egypt.
Additionally, the company plans to 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,” said Frans van Eersel, Founder and CEO of Dopay.
“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.”
According to DoPay, its platform revolutionises payroll by enabling real-time payments, even on weekends and holidays. Each account is equipped with a pre-paid debit card, in partnership with MasterCard, providing 24/7 access to funds via ATM withdrawal.
Enrolled businesses benefit from a secure and cashless payroll system, with user-friendly interfaces and complete transparency. Employees gain instant and secure access to banking facilities, regardless of their earnings. DoPay’s agent banking licence allows for the swift delivery of digital banking services and seamless onboarding of employees and beneficiaries, positioning the company as a leader in Egypt’s digital payroll space.
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, commented:
“We believe a payroll-centric approach is the key to integrating unbanked and underbanked workers in emerging markets into the financial system.
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.”
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