Dopay, a fintech company focused on digital payroll solutions, has raised $13.5 million in a Series A extension round led by Argentem Creek Partners. This new funding will aid Dopay in its mission to enhance financial inclusion by expanding its digital payroll and payment services, particularly in emerging markets like Egypt.
Background
Founded in 2014 by Frans van Eersel and Ezzeldin Ahmed, Dopay aims to tackle the challenge of financial inequality in cash-oriented societies. Based in London, with offices in Cairo and Ghana, Dopay provides a cloud-based payroll technology that enables employers to manage the entire payroll process digitally. This includes onboarding employees, calculating salaries, and issuing electronic payments via prepaid cards powered by Mastercard.
Dopay targets businesses that rely heavily on cash payments, offering a seamless transition to digital payroll. The platform benefits both employers, who gain from an automated payroll system, and employees, who enjoy access to banking facilities through a user-friendly app. This approach addresses the needs of over 1.7 billion unbanked workers worldwide, helping to break the costly ‘cash cycle’ in emerging economies.
Details of the Funding Round
The recent $13.5 million Series A extension, led by Argentem Creek Partners, builds on Dopay’s previous $18 million Series A round. This cumulative funding will enable Dopay to scale its operations in Egypt, where a significant portion of the population remains unbanked. The funds will also support the development of additional financial services beyond payroll, such as real-time payments and early access to earned wages, enhancing financial flexibility for employees.
Dopay’s platform digitizes cash payments, providing employees with prepaid debit cards that offer 24/7 access to funds via ATMs. This solution not only facilitates cashless payroll but also promotes financial inclusion by allowing employees to participate in the digital economy through card purchases at millions of merchants.
The funding round underscores the confidence investors have in Dopay’s business model and growth potential, particularly in markets like Egypt, where the company already serves hundreds of businesses. With regulatory approvals and a robust agent banking license, Dopay is well-positioned to lead the digital payroll revolution in the MENA region.
Impact and Plans for the Future
The $13.5 million Series A extension funding will enable Dopay to accelerate its expansion in Egypt and explore new markets in the MENA region. The company aims to leverage its innovative digital payroll platform to provide a suite of financial services, including earned wage access, personal loans, credit cards, business loans, insurance, savings, and investment options. Dopay’s approach focuses on a payroll-centric model, which helps integrate unbanked and underbanked workers into the financial system, fostering long-term customer relationships and offering significant cross-selling opportunities.
Market Context
Dopay’s expansion plans are set against a backdrop of significant market potential in emerging economies. In Egypt alone, 67% of the 104 million population are unbanked, and 94% lack access to credit. This presents a substantial opportunity for Dopay to address the financial needs of millions of workers who still rely on cash payments. The company’s digital payroll solution not only facilitates secure and efficient payment processes but also promotes financial inclusion by enabling employees to access banking services and participate in the digital economy. Dopay’s operations in Egypt have already seen adoption by a diverse range of corporate clients, including industry leaders such as G4S, EFS Facilities Management, and SWVL.
Conclusion
Dopay’s recent $13.5 million Series A extension funding marks a significant milestone in the company’s journey to enhance financial inclusion in emerging markets. With this funding, Dopay plans to scale its operations in Egypt, where a large portion of the population remains unbanked, and expand into other MENA region countries. The company’s innovative digital payroll platform addresses the needs of both businesses and employees, offering real-time payments, prepaid debit cards, and access to a suite of financial services such as personal loans, credit cards, and savings options.
Dopay’s platform simplifies the payroll process for businesses and provides employees with secure and convenient access to their wages. The company’s agent banking license in Egypt and partnerships with major financial institutions like Mastercard further strengthen its position in the market. By addressing the challenges of cash-based economies, Dopay is paving the way for greater financial inclusion and empowerment for millions of workers.
The enthusiastic support from investors and the strategic leadership of Dopay’s team, including new COO Ahmed Nassef, underscore the company’s potential for growth and impact in the financial technology sector. As Dopay continues to innovate and expand, it is poised to become a leading player in the fintech industry, driving financial inclusion and transforming the payroll landscape in emerging markets.
