While many African fintech companies rely heavily on working capital loans to scale, MoneyFellows, a Cairo-based fintech startup, has quietly disrupted traditional lending by lending billions of Egyptian pounds without heavily leveraging its balance sheet or accumulating debt.
Recently, MoneyFellows secured $13 million in a pre-Series C funding round led by Al Mada Ventures (Casablanca) and DPI’s Nclude Fund. The round also saw participation from Partech Africa and CommerzVentures, bringing the company's total funding to over $60 million. With this new investment, the company is shifting gears—from steady growth to regional expansion.
What Makes MoneyFellows Unique?
Unlike many fintechs that burn through cash in pursuit of rapid growth, MoneyFellows has maintained a lean operation while digitizing a centuries-old financial system: the rotating savings and credit association (ROSCA).
CEO and Founder Ahmed Wadi explains,
“We’ve cracked this traditional model and achieved profitability while lending out billions of Egyptian pounds—all without relying on working capital. This is quite disruptive in the fintech space.”
Understanding ROSCA and Its Potential
ROSCAs are informal savings groups common in emerging markets, known by different names across regions—esusu or ajo in Nigeria, kameti or chit in India, and gam’eya in Egypt. The concept is straightforward: a fixed group of people contribute a set amount regularly into a shared pot, which is then paid out to one member per cycle until everyone has received their payout.
For example, if 10 individuals contribute $1,000 each month, the pooled amount of $10,000 goes to one member monthly. The process repeats until all participants have collectively received their share.
Offline and trusted by nature, these groups face scaling challenges because they rely on personal trust and limited local connectivity. MoneyFellows leverages digital technology to formalize and expand this model, making it accessible to a broader audience.
Key Advantages and Future Plans
- Disruptive Capital Model: By digitizing ROSCAs, MoneyFellows eliminates dependence on external working capital, reducing costs and risk—while expanding financial inclusion.
- Profitable and Lean: The startup’s ability to operate profitably without extensive debt sets it apart in the fast-growing fintech landscape.
- Regional Expansion: With fresh funding, MoneyFellows aims to take its innovative savings model across the Middle East and Africa, bringing formalized, accessible group savings to millions.
CEO Wadi emphasizes,
“Our mission is to scale this model regionally, empowering people to save and access credit through trusted, convenient digital platforms. We believe this approach can transform how millions access financial services in emerging markets.”
Play audio
No comments