Money Fellows, an Egyptian fintech digitizing money circles, raises $31M funding

News Summary

  • It plans to offer more financial services such as buy now pay later, pension, and cards, where the four-year-old fintech plan to make interchange fees.Money Fellows has over 4.5. million registered users on its platform; however, only 7% are monthly active users.
  • It charges a one-time service fee of about 6% to users who choose its early spots; the percentage decreases down the line and turns to incentivized interest paid to users at the end of the cycle.“People looking to borrow can find slots on our platform.
  • It decreases the more you’re willing to wait until the end of that ROSCA, where we incentivize the users with one of the most attractive saving incentives in the country.”Any fintech business that involves lending in one form or another has to deal with defaults.
  • It is brilliant to see this new digital ROSCA-driven model [Money Fellows] emerge from Africa, creating a trusted model of delivering financial solutions and setting a new standard on using localized solutions to solve for global opportunities.”
  • Similar players globally include Pakistani fintech Oraan and U.K.-based StepLadder.Oraan raises $3M to increase financial inclusion among Pakistani womenMoney Fellows classifies its users as borrowers, savers, or planners depending on where their position is in a ROSCA cycle and when they receive a payout.
  • According to the chief executive, Money Fellows sets aside reserves for every new ROSCA launched and, complying with a provisioning schedule, covers any defaults from those funds.“The good thing with ROSCAs versus consumer finance is that not everyone has equal credit exposure.
Egyptian fintech Money Fellows has raised $31 million in what it describes as the first close of its Series B investment. The round, which the startup expects to top up in the coming months, was led [+6186 chars]