Dopay, a rapidly growing fintech company that offers a digital payroll and payments platform for unbanked and underbanked workers in emerging markets, has announced the successful closure of a strategic $13.5 million Series A extension round, Invest-Gate reports.
This funding milestone represents a significant advancement in Dopay’s mission to transform cash-based economies by digitizing payments and providing financial inclusion to millions of workers.
Dopay’s innovative virtual banking platform digitizes cash payments from employers to workers and other beneficiaries, addressing a major fintech opportunity in emerging markets.
The Series A extension funding, led by Argentem Creek Partners with participation from existing investors, will empower Dopay to accelerate its rapid expansion in its initial market, Egypt.
Additionally, the company plans to introduce a range of new financial services and expand its multi-bank, multi-country platform to other markets.
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, commented on the significance of a payroll-centric approach in integrating unbanked and underbanked workers in emerging markets into the financial system. He emphasized the potential for long-term customer relationships and cross-selling various financial products, such as earned wage access, personal loans, credit cards, business loans, insurance, savings, and investments.
Kaj-Erik Relander, an existing investor and board member at Dopay, acknowledged the remarkable growth opportunity presented by Dopay’s platform and the significant underbanked population. Relander’s continued support reflects confidence in Dopay’s mission to revolutionize financial services in emerging markets.
Frans van Eersel, Founder and CEO of Dopay, highlighted the timing of the funding, coinciding with the company’s impressive growth trajectory. The new funds will enhance Dopay’s platform and, in collaboration with partner banks, enable the creation of a self-financing lending model using deposited funds. This model will leverage deposited amounts to fuel a lending portfolio, establishing a sustainable and mutually beneficial financial ecosystem.
Ahmed Nassef, COO of Dopay, emphasized the significance of Egypt as a microcosm of the global opportunity to drive financial inclusion. With over 60% of workers in Egypt primarily relying on cash, Dopay’s mission aligns with the Egyptian Central Bank’s vision of digitizing payments and fostering financial inclusion.
