- Dopay, a fintech company, closed a $13.5 million Series A extension round to expand financial inclusion in emerging markets.
- The company offers a virtual banking platform that digitizes cash payments for workers and beneficiaries.
- Dopay plans to create a self-financing lending model by leveraging deposited funds with partner banks.
- The company’s real-time payment platform and agent banking license position it as a leader in digital payroll solutions.
Egypt-based fintech Dopay has made significant strides in the financial technology sector, closing a $13.5 million Series A extension round. This follows a previous $18 million Series A round raised in 2021, bringing their total funding to $31.5 million.
The recent funding round, led by Argentem Creek Partners with participation from existing investors, marks a crucial step in Dopay’s mission to transform cash-based economies and provide financial inclusion for millions of workers in emerging markets.
Founders and Background
Founded in 2014 by Frans van Eersel and Ahmed Nassef, Dopay is part of Hub71, Abu Dhabi’s global tech ecosystem. The company offers a virtual banking platform that digitizes cash payments from employers to workers and other beneficiaries. This innovation addresses one of the most significant opportunities in the fintech space i.e. integrating unbanked and underbanked workers into the financial system.
New Funding and Its Impact
The $13.5 million Series A extension funding will enable Dopay to accelerate its expansion in its initial market, Egypt. Furthermore, the company plans to launch a range of new financial services and expand its multi-bank, multi-country platform to other markets. This strategic funding will help Dopay enhance its platform and create a sustainable, self-financing lending model in collaboration with partner banks.
Strategic Vision and Investment
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, emphasized the importance of a payroll-centric approach for financial inclusion. This model fosters long-term customer relationships and provides a robust base for cross-selling financial products such as earned wage access, personal loans, credit cards, business loans, insurance, savings, and investments. Terlouw expressed confidence in Dopay’s multi-bank, multi-country platform and its potential for growth in the next stage.
Kaj-Erik Relander, an existing investor and board member at Dopay, highlighted the company’s unparalleled platform capabilities and the vast underbanked population as key factors for growth. The continued support from investors underscores their confidence in Dopay’s mission to revolutionize financial services in emerging markets.
CEO’s Vision
Frans van Eersel, Founder and CEO of Dopay, noted that the new funding comes at a pivotal moment for the company. He emphasized the company’s rapid growth and the importance of the new funds in elevating its platform.
By leveraging deposited funds through partner banks, Dopay aims to create a self-financing lending model that will allow deposited amounts to fuel a lending portfolio. This innovative approach will foster a sustainable and mutually beneficial financial ecosystem, with new financing products seamlessly embedded into the platform to enhance the customer experience.
Innovative Platform Features
Dopay’s platform revolutionizes payroll by enabling real-time payments, even on weekends and holidays. Each account is equipped with a prepaid debit card, in partnership with Mastercard, providing 24/7 access to funds via ATM withdrawal. This ensures employees have instant and secure access to banking facilities, regardless of their earnings. Enrolled businesses benefit from a secure and cashless payroll system with user-friendly interfaces and complete transparency.
Agent Banking License
Dopay’s agent banking license allows for the swift delivery of digital banking services and seamless onboarding of employees and beneficiaries. This positions the company as a leader in Egypt’s digital payroll space, providing a secure and efficient solution for both employers and workers. The platform’s ability to deliver real-time payments and offer comprehensive banking services underscores Dopay’s commitment to financial inclusion and innovation.
Dopay’s $13.5 million Series A extension round is a significant milestone in its mission to provide financial inclusion for unbanked and underbanked workers in emerging markets.
The company’s innovative virtual banking platform, strategic vision, and strong support from investors position it for continued growth and expansion. As Dopay accelerates its expansion in Egypt and other markets, it is set to revolutionize financial services and transform cash-based economies, offering a brighter financial future for millions of workers.
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