MoneyFellows, an Egyptian fintech founded in 2016, has successfully modernised the traditional Rotating Savings and Credit Association (ROSCA) model, differentiating itself from many African digital lenders that heavily rely on borrowed capital for growth. Recently, the company secured $13 million in a pre-Series C funding round led by Al Mada Ventures and the Nclude Fund, boosting its total funding to approximately $60 million. This capital enables MoneyFellows to transition from steady growth to regional expansion.
CEO Ahmed Wadi highlighted the firm’s unique approach, which allows it to lend billions while operating profitably without traditional working capital. By digitising ROSCAs, MoneyFellows facilitates access for users nationwide through its app, enabling them to create or join savings groups. Unlike traditional lending models that require banks’ or institutions’ funding, MoneyFellows matches savers and borrowers via behavioural data and credit metrics, stepping in only when a ROSCA group has an unfilled slot. With less than 10% of active groups needing working capital, the company minimizes financial exposure.
Currently, MoneyFellows boasts over 8.5 million users, a notable increase from 4.5 million in its last funding round. The average payout per user has grown significantly, aiding its organic growth driven by competitive borrowing rates. Recently, the company launched a card for users to manage payouts and instalments across a merchant network and plans to introduce investment, payroll, insurance, and remittance products, competing with other Egyptian digital banks.
MoneyFellows is also eyeing expansion beyond Egypt, with plans to launch in Morocco by the end of the year. This move leverages Morocco’s large unbanked populace and its informal savings culture, which is similar to ROSCAs. Wadi acknowledged that expanding into diverse markets poses challenges, particularly when informal finance mechanisms are less culturally ingrained, but believes the unique model adapts to local needs.
Having refined its processes in the competitive Egyptian market, MoneyFellows established partnerships with over 350 local and regional entities and facilitated investments exceeding $50 million. Its upcoming ambitions hinge on maintaining user trust and effectively managing the complexities inherent in digitising ROSCAs, a venture that has seen varied success in other regions. The fintech’s potential growth is further buoyed by events like the 2030 FIFA World Cup, anticipated to accelerate digital adoption in Morocco.
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