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Egyptian Fintech Firm, Dopay Secures $18m Series A Round to Grow its Virtual Banking Platform

Dopay, the Egyptian fintech firm, has closed an $18 million Series A funding round led by Force Over Mass Capital, FMO and NN Group. Mbuyu Capital and Alder Tree Investments were also significant participants.

The Series A funding round will enable Dopay to continue scaling rapidly in its initial market, Egypt, while building a range of financial services in addition to cashless payroll and prepaid cards for employees.

Founded in 2014, the Dopay platform enables staff to be paid in real-time, even during weekends and holidays. Each account provides a prepaid debit card, in partnership with Mastercard, enabling 24/7 access to funds via ATM withdrawal.

Enrolled businesses benefit from a secure and cashless payroll, with simple-to-use interfaces and fully auditable transparency. Prepaid card users enjoy instant and secure access to banking facilities, no matter how much they earn. Dopay’s agent banking license, enabling the delivery of digital banking services and onboarding of employees and beneficiaries in seconds, puts Dopay in a strong competitive position in Egypt’s salary payments space.

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Through its virtual banking platform, Dopay digitizes cash payments from employers to workers and other beneficiaries, directly addressing one of today’s largest fintech opportunities in emerging markets.

Frans van Eersel, Founder and CEO of Dopay, said, “The value of our Series A funding confirms the investment community’s confidence in the Dopay offer. Our commercial validity through our B2B2C model is clear, and our technology capability is proven and strong. Egypt is the biggest market in the MENA region. We will serve a rapidly growing number of Egyptian businesses, from SMEs to major corporations, and their employees.

“Our Dopay leadership is world-class, with successful creators of billion-dollar payments businesses on the Board. We are ready to aggressively grow our solutions, leveraging up- and cross-selling opportunities, as we increase Dopay’s range of services and partners across MENA.”

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Wouter Volckaert, Chief Investment Officer, Force Over Mass Capital, said, “Egypt has around 2.4 million individual businesses and 104 million people, some 67% of whom do not have a bank account, while 94% have no access to credit.

“The Dopay business model engages with business owners in the first instance, meaning they don’t have to attract individual customers. Each company signing up with Dopay brings an entire workforce in a single transaction, and this is a very strong growth driver. Their new platform provides frictionless onboarding for employees while enabling Dopay to scale their business at pace.”

Michiel Timmerman, Managing Partner, Mbuyu Capital, commented, “We are very excited about our investment in Dopay. The company’s product offers significant potential for growth, addressing the very large market of cash-paid workers with a solution that benefits employers and employees. 

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“It presents an opportunity to create financial inclusion at scale. The regulatory approvals acquired to launch their next-generation platform have created a strong competitive advantage for Dopay in this segment of the financial services market in Egypt.”

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