Egypt’s MoneyFellows Secures $13M Investment to Revolutionize Digital Money Circles

MoneyFellows has successfully revolutionized the traditional concept of Money Circles through its innovative digital platform. The recent pre-Series C funding round, led by Al Mada Ventures and the Nclude Fund, has garnered the support of notable investors such as Partech Africa and CommerzVentures.

Understanding Money Circles: A Digital Transformation

Popularly known as “Gameya” in Egypt and various Arab regions, Money Circles—officially referred to as Rotating Savings and Credit Associations (ROSCAs)—operate on a simple yet effective model:

• A group of individuals agrees to contribute a fixed amount each month.
• Each month, one member of the group receives the total pooled amount.

For instance, if ten participants each commit to contributing $100 for ten months, one member will receive $1,000 every month. This traditional system has now been digitized by MoneyFellows, making it easier for users to connect and collaborate.

How MoneyFellows Innovates the ROSCA Model

MoneyFellows leverages behavioral data, credit scores, and income tiers to create a more accessible and efficient platform for savers and borrowers. This approach significantly widens the potential network of Money Circle partners beyond the conventional circle of friends and family.

Impressive Growth and Profitability

Since its launch in 2018, MoneyFellows has achieved remarkable milestones:

• Over 8.5 million users on its platform.
• An average payout of approximately $900 per user.
• Achieved profitability while lending out billions without relying on external working capital.

Ahmed Wadi, CEO of MoneyFellows, shared insights with TechCrunch: “We have managed to crack this model and reach profitability. Doing this while lending out billions without relying on working capital at all is quite disruptive in itself.”

Conclusion: The Future of Digital Saving

With its innovative approach to traditional savings practices, MoneyFellows is setting a new standard in the financial technology landscape. As it continues to grow and evolve, the platform is poised to provide even greater value to its users, enhancing financial inclusion across the region.

For more information about the ROSCA model and its benefits, visit Investopedia.