Egyptian fintech company Money Fellows has successfully secured $13 million in funding to enhance its mobile platform designed for money circles. This innovative approach allows individuals to contribute collectively to a shared fund, enabling cooperative savings and borrowing.
The pre-Series C funding round was orchestrated by Al Mada Ventures and DPI’s Nclude Fund, alongside contributions from Partech Africa and CommerzVentures.
Money circles, often referred to as “Gameya” in Egypt and other Arab nations, fall under the category of Rotating Savings and Credit Associations (ROSCAs). These associations function by gathering a group of participants who agree to invest a specific amount monthly over a defined period. For instance, if ten individuals commit to contributing $100 for ten months, one member receives $1,000 each month.
Money Fellows has modernized this traditional format by leveraging behavioral data, credit scores, and income levels to connect savers and borrowers. This approach expands the potential network for money circle participants beyond just friends and family.
Since its inception in 2018, Money Fellows has grown its user base to over 8.5 million, with an average payout of approximately $900 per user, facilitating the company’s journey to profitability.
Ahmed Wadi, CEO of Money Fellows, shared with TechCrunch, “We have successfully cracked this model and reached profitability. Achieving this while lending billions without relying on working capital is quite disruptive in itself.”