Egyptian fintech Moneyfellows raises $31M

MoneyFellows, an Egyptian fintech company, has secured $31 million for its mobile platform for money circles, in which a number of people pool their funds for a set amount of time in order to borrow and save money together.

Money Circles, often referred to as Rotating Savings and Credit Associations, are a common financial product in Egypt and other Arab nations under the term “Gameya” (ROSCAs).

ROSCAs function by bringing together a group of individuals who each agree to contribute a specific sum of money each month for a specific period. One member receives the amount for that month each month. Therefore, if 10 people agree to pay $100 apiece for 10 months, each member will receive $1,000 per month.

Money Fellows claims that through digitising money circles, individuals can expand their prospective dating pool beyond the typical circle of close friends and family.

The business boasts hundreds of thousands of active users each month and 8x yearly growth. The additional cash will be utilised to diversify its service offering and expand geographically into Asia and Africa.

Invenfin, National Investment Company, Partech, Sawari Ventures, 4DX, and P1Ventures were also participants in the Series B round, which was led by CommerzVentures, Middle East Venture Partners, and Arzan Venture Capital.