Egyptian fintech Money Fellows has successfully raised $31 million for its mobile-based platform that facilitates money circles. This system allows groups of individuals to contribute to a collective pot over a specified period, enabling them to save and borrow together.
Known as “Gameya” in Egypt and other Arab nations, money circles are also referred to as Rotating Savings and Credit Associations (ROSCAs). These operate by gathering a group of participants who commit to contributing a fixed amount monthly for a designated timeframe. For instance, if ten individuals agree to contribute $100 each month for ten months, one participant receives $1,000 each month.
By digitizing this traditional concept, Money Fellows aims to expand users’ opportunities to connect with prospective partners beyond their immediate circle of friends and family. The company reports having hundreds of thousands of active users each month, with an impressive year-on-year growth rate of 8x. The latest funding will facilitate the diversification of its service offerings and support its expansion efforts across Africa and Asia.
The Series B funding round was led by CommerzVentures, Middle East Venture Partners, and Arzan Venture Capital, with additional contributions from Invenfin, National Investment Company, Partech, Sawari Ventures, 4DX, and P1Ventures.
Hangwi Muambadzi, a venture partner at CommerzVentures, remarked, “Rotating Savings and Credit Associations have been deeply embedded in emerging markets across the world for centuries. It is brilliant to see this new digital RoSCA-driven model emerge from Africa, creating a trusted framework for delivering financial solutions and setting a new standard through localized approaches to address global challenges.”