(Ecofin Agency) - Egypt-based fintech dopay, which offers digital payment services to unbanked workers, has raised $18 million in a Series A funding round. The deal was led by UK firm Force Over Mass Capital, Dutch development bank FMO and NN Group. Mbuyu Capital and Alder Tree Investments also participated.
Dopay will use the money to strengthen its presence in Egypt, "the largest market in the Middle East and North Africa region," according to founder and CEO Frans van Eersel. In addition to the payment services and prepaid cards it offers to businesses, the company plans to upgrade its financial services offering and expand its partnerships.
"Egypt has around 2.4 million individual businesses and 104 million people, some 67% of whom do not have a bank account, while 94% have no access to credit," said Wouter Volckaert, Investment Director at Force Over Mass Capital.
"Each company signing up with dopay brings an entire workforce in a single transaction, and this is a very strong growth driver. Their new platform provides frictionless onboarding for employees while enabling dopay to scale their business at pace,” he added.
Dopay obtained its banking agent license from the Central Bank of Egypt last August. Through this license secured via Arab Banking Corporation Egypt, the fintech has set up a virtual banking service platform.