Cairo-based fintech startup NowPay has announced the close of its seed round, a USD 600 K venture investment from Silicon Valley’s Endure Capital and 500 Startups. The startup was launched in early 2019, probably a few months after which the funding was raised. The investment was closed earlier in the year but is now being announced.
NowPay is out to improve the financial wellness of corporate employees. The startup collaborates with employers to help their staff get paid in advance at any time of the month, using a mobile application.
The company works closely with the Human Resource (HR) of each company. They deduct a small fee from each transaction before paying ‘ahead salaries’ to their employees. With the service, workers can manage their budgets better and save themselves certain financial worries.
NowPay was founded by Mostafa Ashour, Ahmed Sabry, and Cherif Radi, each of whom has previously worked for companies such as Microsoft, Amazon, IBM, and Orange.
Judging by their pedigree, wealth of experience and size of the startup’s seed round, the company might very well become one of the most prominent Egyptian fintechs soon. WeeTracker sought more details regarding the investment. But at press time, the startup is yet to respond to questions.
“In order to reduce money worries, lower financial stress and cut down attrition rates, employees need to feel that they can get their salaries whenever they are cash-strapped,” said Ashour, explaining that his solution helps employees better manage their budgets, overcome cash flow problems and avoid unexpected events,” the company said.
This year, many fintechs in the North African country has stepped into the light with one financial development or the other. Two months ago, Now Pay’s competitor, PayNas, an HR and payroll startup came out victorious, winning USD 50 K at the 2019 edition of Seamless North Africa. XPay, in May, closed a USD 250 K angel round to scale its operations. Most important of all, pioneering fintech company Fawry IPO’d on the Egyptian Stock Exchange and gained USD 366 Mn in market cap.
Relatively, it has been a good year for these startups, even as the North African country’s government decided to dedicate USD 57 Mn in financing facility for these companies. Egypt’ fintech scene is one of the busiest on the continent, and we are likely to see more activities before the year ends.