Archive — US — techcrunch
MoneyFellows raises $13M to take its group savings model outside Egypt
MoneyFellows, an Egyptian fintech, raised $13M for regional expansion, seeking to digitize the rotating savings and credit association (ROSCA) model. Unlike conventional lenders, it operates profitably with minimal debt. With 8.5M users, the app matches savers and borrowers efficiently and plans to enter Morocco and other African markets by 2025.
Key points
- MoneyFellows raised $13M from Al Mada Ventures, DPI’s Nclude Fund, and others.
- The firm has total funding exceeding $60M.
- Achieved profitability while lending billions without working capital.
- Develops a digital platform for ROSCA, increasing access and scalability.
- Plans to expand to Morocco by year-end 2025, aiming to replicate success in similar markets.
Why it matters
- The digital transformation of traditional savings methods reflects the shift in fintech towards more accessible financial services in emerging markets.
- Historical reliance on ROSCA-like models in various countries demonstrates a need for modernization in informal finance.
- With global trends focusing on financial inclusion and digital banking, MoneyFellows' approach aligns with the growing push towards innovative fintech solutions.
MoneyFellows exemplifies the evolution of fintech in Africa by modernizing ROSCA, achieving profitability, and preparing for expansion in the region, signaling a significant shift towards digitizing established financial practices.