Egyptian fintech startup Money Fellows has received $31 million from investors in the first close of its Series B round. The startup, which digitizes the Rotating Savings and Credit Association system in Egypt, saw CommerzVentures, Middle East Venture Partners and Arzan Venture Capital lead the round.
Partech, Sawari Ventures, Invenfin, National Investment Company (NIC), 4DX Ventures and P1Ventures also participated in this funding round. Money Fellows was founded by Ahmed Wadi, the startup’s CEO, as a response to his difficulties accessing credit while living in Germany. But in a more developed financial system than Africa, he found little success until he launched the business in Egypt in 2017.
Although the platform has over 4.5 million registered users, only 7% are monthly active. However, the startup claims to have grown 8x annually. The startup charges users who choose its first spots a one-time 6% service fee. As more people join the circles, users are charged a lower percentage.