dopay, a fast-growing financial technology (fintech) company, has secured $13.5m in an extension to its Series A funding round. The company provides a digital payroll and payments platform for unbanked and underbanked workers in emerging markets.
This funding milestone is a significant step forward in dopay’s mission to transform cash-based economies. They aim to achieve this by digitizing payments and promoting financial inclusion for millions of workers.
dopay’s innovative virtual banking platform allows employers to make digital cash payments to workers and beneficiaries.
This tackles a major fintech opportunity in emerging markets. The Series A extension round was led by Argentem Creek Partners with participation from existing investors. The funds will be used to accelerate dopay’s expansion in its initial market, Egypt. Additionally, the company plans to launch new financial services and expand its multi-bank, multi-country platform to other markets.
Investors are confident in dopay’s approach. Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, commented on the potential for integrating unbanked workers into the financial system through payroll. He believes dopay’s model fosters long-term customer relationships and provides a strong base for offering additional financial products.
Existing investor and board member at dopay, Kaj-Erik Relander, highlighted 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.
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.
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.
