Introduction
Egypt-focused B2B2C payments platform, dopay, has secured an additional $13.5 million in its Series A funding round. This significant milestone supports dopay’s mission to revolutionize cash-based economies by digitizing payments and enhancing financial inclusion for unbanked and underbanked workers in emerging markets.
Transforming Cash-Based Economies
Dopay's digital payroll and payments platform aims to transform economies heavily reliant on cash. By offering a virtual banking platform, dopay enables employers to make digital cash payments to workers and beneficiaries, addressing a major fintech opportunity in emerging markets.
Funding Round and Investment Plans
The Series A extension round was led by Argentem Creek Partners, with participation from existing investors. The newly secured funds will be instrumental in accelerating dopay’s expansion in Egypt, its initial market. Additionally, dopay plans to launch new financial services and expand its multi-bank, multi-country platform to other markets.
Investor Confidence and Strategic Vision
Investors have expressed strong confidence in dopay’s approach. Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, highlighted the potential of integrating unbanked workers into the financial system through payroll. He noted that dopay’s model fosters long-term customer relationships and provides a solid foundation for offering additional financial products.
Kaj-Erik Relander, an existing investor and board member at dopay, emphasized the significant opportunity presented by the large underbanked population and dopay’s robust platform. He reiterated his support for dopay’s mission to revolutionize financial services in emerging markets.
Enhancing the Platform and Sustainable Growth
Frans van Eersel, Founder and CEO of dopay, stated that the funding comes at a critical time as the company experiences rapid growth. The new funds will be used to enhance their platform and create a self-financing lending model in collaboration with partner banks. This model will utilize deposited funds to fuel a lending portfolio, fostering a sustainable financial ecosystem. Customers can expect new financing products seamlessly integrated into the platform, improving their overall experience.
Dopay’s Mission in Egypt and Beyond
Ahmed Nassef, COO of dopay, emphasized that Egypt represents a microcosm of the global opportunity for financial inclusion. With over 60% of Egyptian workers relying primarily on cash, dopay’s mission aligns with the Egyptian Central Bank’s vision of digitizing payments and promoting financial inclusion. By addressing the core issue of efficient and timely payroll payments, dopay aims to transform the payroll landscape and contribute to Egypt’s broader economic development. Their success in Egypt will serve as a blueprint for expansion into other emerging markets, showcasing the transformative power of their digital payroll solutions.
