Cairo-based fintech NowPay has raised USD 2.1 million in a seed spherical co-led by Basis Ventures and Endure Capital, with the participation of traders from america, United Arab Emirates, China, and Egypt, the corporate mentioned in a press release despatched to MENAbytes.
Beco Capital, 500 Startups (MENA), Plug and Play, 4Dx Ventures, MSA Capital, EFG-EV Fintech, and Ebikar, additionally joined the spherical. Angels together with Quirky Ventures, Gehan Fathi, and Rolaco additionally invested within the spherical. The funding brings NowPay’s complete increase thus far to USD 2.7 million. It had raised USD 600,000 in 2019.
Based by Mostafa Ashour and Ahmed Sabry, NowPay launched its monetary wellness platform in 2019 to allow corporates to supply wage advances to their workers. They’ve not too long ago additionally added Gehan Fathi, who beforehand labored as managing director at EFG, and Mahmoud ElHosseiny, who managed Egypt gross sales for Fortune 500 firm Stanley-Black Decker, to their govt workforce.
The workers of corporations that companion with NowPay can request parts of their salaries to be paid at any time of the month by way of its cellular app.
The account needs to be validated by the employer earlier than it may be used to request advances. As soon as the account is accredited, they will additionally see the small print of their wage and the quantity they’re eligible to request as an advance. The cellular app allows customers to handle and monitor their financial savings and bills, and presents monetary suggestions. NowPay’s web site says that its answer is shariah-compliant. For employers, it’s free. The workers, nonetheless, are charged a price each time they use it.
Mostafa Ashour, the co-founder and CEO of NowPay who beforehand led the innovation groups at Microsoft Analysis, informed MENAbytes that their answer is at the moment being utilized by over 70 entities, which incorporates a mixture of publicly listed corporations, multinationals, and startups. A few of these corporations are Domty, MNHD, Sodic, Axa, Trella, Elmenus, and Wuzzuf.
In a press release, Ashour mentioned, “Through the peak of COVID-19 lockdowns, we’re proud to have well-known and eminent traders again us, signaling belief in our enterprise idea and our workforce. Saving, spending, budgeting, and borrowing are our 4 pillars of economic wellness. Monetary stress performs a serious function as a prime distraction for workers. NowPay bridges that hole and offers a number of advantages for employers that select to proactively tackle this space of worker wellness.”
“Inside a really brief interval, we’re delighted to have managed salaries in extra of USD 100 million with a 60% month-over-month progress fee,” he added.
The answer supplied by NowPay helps employers enhance worker happiness, productiveness, and company loyalty, with none adjustments of their money circulation as the cash is obtainable by NowPay. For employers, it’s just about enterprise as ordinary. They’re solely speculated to deduct the advance quantity and price from the wage throughout common remuneration funds, and switch these funds to NowPay instantly.
Ziyad Hamdy, managing companion at Basis Ventures, a newly established Cairo-based VC, commented on the funding and mentioned, “There’s an asymmetry between bills and earnings, which places quite a lot of stress on workers’ morale and hampers productiveness. We’re thrilled to hitch NowPay’s unimaginable workforce on this journey of empowering workers with the happiness and wellness that monetary stability offers.”
Tarek Fahim, managing companion at Endure Capital, mentioned, “Not on daily basis you might have each clear product-market match and founders-market match. That’s what they’ve at NowPay. Simply attend any enterprise assembly with the workforce and you’ll realize it instantly.”
NowPay plans to make use of the newest funds to “deepen the capabilities” of its platform, develop its workforce, and probably launch in different markets within the area and past. The startup didn’t share particulars in regards to the markets it’s eyeing for expansions. There are different gamers that provide comparable providers within the area, together with FlexxPay and Bayzat.
This text first appeared in MENAbytes.