Egyptian fintech Dopay, offering a digital payroll and payments platform for unbanked and underbanked workers in emerging markets, has secured $13.5 million in a Series A extension round. Led by Argentem Creek Partners with participation from existing investors, this funding will accelerate Dopay’s expansion in Egypt and support the launch of new financial services and the expansion of its multi-bank, multi-country platform.
Founded in 2014 by Frans van Eerse (CEO) and Roel Van Eersel, Dopay addresses the financial needs of unbanked and underbanked populations by allowing employers to make digital cash payments directly to workers and beneficiaries. This initiative aligns with the Egyptian Central Bank’s vision of digitizing payments and promoting financial inclusion, particularly as over 60% of Egyptian workers rely primarily on cash.
In August 2021, Dopay received a banking agent license through Arab Banking Corporation Egypt (Bank ABC Egypt), enabling the launch of a next-generation virtual banking platform. This platform allows businesses to instantly open accounts for employees and other beneficiaries, facilitating real-time payments in line with Central Bank of Egypt guidelines. Following this, Dopay raised $18 million in Series A funding in September 2021 to enhance its operations and develop its virtual banking platform.
CEO Frans van Eerse emphasized that the new funding is timely, coinciding with the rapid growth of fintech. He stated that the funds would help improve the platform in collaboration with partner banks and leverage deposited funds to create a self-financing lending model. This model will use deposited amounts to fuel a lending portfolio, fostering a sustainable financial ecosystem and introducing new financing products seamlessly embedded into the platform.
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, highlighted the payroll-centric approach as crucial for integrating unbanked and underbanked workers into the financial system. He believes this model fosters long-term customer relationships and provides a strong foundation for cross-selling financial products.
