"We Got Funded!" Egypt-Headquartered DoPay Raises US$13.5 Million In An Extension Of Its $18 Million Series A Round By enabling real-time digital payments -even on weekends and holidays- from employers to workers and other beneficiaries, Dopay has set out to directly address the issue of financial inclusivity.

DoPay, an Egypt-headquartered digital payroll and payments platform, has raised US$13.5 million in a Series A extension round led by Argentem Creek Partners, a US-based investment firm that specializes in emerging markets. With some of Dopay's existing investors partaking in the round as well, this announcement marked an extension of Dopay's $18 million Series A round, which was raised in September 2021.

Launched in 2014 with a mission to digitize payments within cash-based emerging economies and thus serve unbanked and underbanked workers, Dopay has set up a base at Hub71, an Abu Dhabi-based global tech ecosystem that supports startups. By enabling real-time digital payments -even on weekends and holidays- from employers to workers and other beneficiaries, Dopay has set out to directly address a pressing issue within emerging nations: financial inclusivity.

"Dopay's cashless payroll solution is designed to provide immediate and tangible benefits to the underbanked and unbanked populations, explains Frans van Eersel, founder and CEO of Dopay. "By converting cash wages to electronic payments, we eliminate the risks and inconveniences associated with handling cash. Our platform also includes features that promote financial inclusion, such as issuing prepaid cards, which workers can use for a variety of transactions, including using their cards to pay for purchasers at retailers."

With the additional capital now at the startup's disposal, van Eersel reveals that plenty of new business opportunities have now arisen in Dopay's foreseeable future. "A significant portion of the funds will be directed towards our expansion efforts in the MENA region and beyond," he continues. "We plan to enhance our infrastructure to support scalability and local compliance requirements in new markets. While the core functionality of Dopay's platform -enabling fully cashless payroll for businesses and providing foundational financial services to the underbanked- will remain unchanged, we will adapt certain features to cater to the unique needs of each new market. This includes integrating with local banking systems, adhering to regional regulatory standards, and potentially offering new services based on market demand. We are particularly thrilled to have Argentem Creek Capital as our lead investor in this round, bringing their valuable expertise in emerging markets and their support for our mission."

Indeed, Argentem Creek Partners' participation in the investment round has been a definitive nod of approval for Dopay. "We believe a payroll-centric approach is the key to integrating unbanked and underbanked workers in emerging markets into the financial system," said Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, in a statement. "This model fosters long-term customer relationships and presents a strong base for cross-selling financial products such as earned wage access, personal loans, credit cards, business loans, insurance, savings, investments, and more. We are impressed by Dopay's multi-bank, multi-country platform and are excited to support the company in its next growth stage."

With each Dopay account equipped with a prepaid debit card -in partnership with global digital payments firm Mastercard- the platform provides 24/7 access to funds via ATM withdrawal. Enrolled businesses can thus benefit from a secure and cashless payroll system, with user-friendly interfaces and complete transparency, while their employees gain instant and secure access to banking facilities, regardless of their earnings. Using this model, Dopay today serves a myriad of clients ranging from small and medium businesses to large corporations such as UAE-based integrated facilities management services provider EFS Facilities Management; and UAE-based tech-enabled mass transit solutions brand Swvl.

And according to founder van Eersel, Dopay's success so far is a reflection of its well-rounded approach towards negating some of the hurdles that continue to prevent underbanked and unbanked populations from accessing the right financial services. "Of course, one of the main challenges is the lack of financial awareness or literacy among the underbanked population," van Eersel says. "This is completely understandable when giving people access to something new – essentially, people don't know what they have been missing until they actually begin using digital financial tools. Many individuals are unfamiliar with basic financial concepts, which hinders their ability to effectively use banking services. Additionally, there is a significant trust deficit towards traditional financial institutions. Infrastructure limitations, such as the availability of banking services in remote areas, and stringent regulatory requirements also pose substantial barriers. Overcoming these hurdles requires a multifaceted approach, including education, tailored financial products, and innovative technological solutions. This is where we come in."

'TREP TALK: Dopay founder and CEO Frans van Eersel shares his top tips for fintech entrepreneurs who want to raise funds

Focus on solving real problems "Ensure your solution addresses a genuine need in the market."

Build a strong team "Investors invest in people as much as in ideas. A team with diverse skills and a proven track record can significantly enhance your credibility."

Stay resilient and adaptable "The fundraising journey can be long and challenging. Persistence and the ability to adapt to feedback are key to success."