Egypt-based fintech startup Balad has secured a seven-figure pre-Seed funding round led by Acasia Ventures, along with participation from other investors including Launch Africa, Future Africa, V&R, Magic Fund, First Circle, Sunny Side, and several family offices. Founded in 2022 by Adham Azzam, Sally Asaad, and Mohamed Assem, Balad aims to provide remittance-driven financial services to migrants and their families.
Balad's unique offering centers around reducing transfer fees and enabling instant delivery of inward remittances through Balad prepaid cards. This innovative approach addresses the needs of the underbanked population, particularly in Egypt and the Gulf Cooperation Council (GCC) region, where remittances play a crucial role in supporting livelihoods. The current transfer fees range from 4% to 11%, and the duration of transfers can extend beyond a week. Balad seeks to enhance financial inclusion by offering a quick and cost-effective solution for remittance receivers.
Globally, one in seven individuals is involved in sending or receiving remittances, with approximately $700 billion circulating annually. Egypt ranks as the fifth-largest recipient of remittances, highlighting the significance of this market segment. Balad's founders recognize the potential of digital remittances to overcome financial barriers, providing migrants and their families with improved access to transferred funds at reduced fees. This approach aligns with the United Nations' 10th Sustainable Development Goal (SDG) by aiming to reduce the average global remittance fee from 7% to 3% within a decade.
The funding raised will be utilized to launch Balad's remittance platform, develop the necessary technology infrastructure, expand the team through new hires, acquire essential licenses, and establish integrations with banking partners. Balad's founders boast a well-rounded background in investment, technology, and finance. Adham Azzam brings a successful entrepreneurial track record from Egypt and the UAE, along with 15 years of experience in financing and investment. Sally Asaad, with 17 years at Commercial International Bank (CIB), offers expertise in innovation management, fintech, and startup partnerships. Mohamed Assem contributes over two decades of software engineering and technical management experience across Europe, the Middle East, and Africa, having led technology teams in various Egyptian fintech companies.
With this recent funding round, Balad is poised to disrupt the remittance market, empowering migrants and their families by bridging the gap between them and essential financial services. By simplifying digital remittances and promoting financial inclusion, Balad seeks to transform the lives of individuals who heavily rely on remittances for their livelihoods, ultimately contributing to the achievement of the UN's SDGs.
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