When businesses first establish an online presence, they usually collaborate with a couple of payment processors. However, as they grow and venture into new markets, they often find themselves needing to integrate additional payment partners to address varied customer preferences and, at times, regulatory requirements—a task which presents its own set of challenges.
This necessity has paved the way for companies that facilitate payment management. Egypt’s MoneyHash, a platform that streamlines complex payment systems for merchants throughout the Middle East and Africa, has secured $5.2 million in funding as it aims to expand its services to larger businesses. This pre-Series A funding comes approximately a year after its previous round in February 2024, where it raised $4.5 million in seed capital. To date, MoneyHash has raised over $12 million since its founding by Nader Abdelrazik and Mustafa Eid in early 2021.
MoneyHash operates within the realm of “payment orchestration,” an area that has gained importance as online transactions surge. In a fragmented payment landscape where businesses may engage with numerous providers to handle their financial transactions, the efficiency of integrating multiple payment solutions often proves to be a technical and operational headache, consuming weeks of an in-house tech team’s time. These complexities are especially pronounced in Africa and the Middle East, where diverse payment methods and currencies exist. Payment orchestration platforms like MoneyHash simplify these processes and aggregate them via APIs across different regions.
Having spent years in the fintech and enterprise software sectors, Abdelrazik and Eid founded MoneyHash after observing various friction points that hinder smooth payment processes. Payments serve as the lifeblood of business operations, but many smaller merchants suffer from high costs and risks tied to payment systems, with failure rates in the region sitting at three times the global average and cart abandonment exceeding 20% compared to developed markets. They identified payment orchestration as the remedy, arguing that merchants lacking these platforms do not scale effectively due to elevated operational costs and lost revenue.
CEO Abdelrazik stated, “The opportunity to resolve these issues is significant. In emerging markets, digital payments represent only a small portion of the overall transaction volume, indicating tremendous growth potential in the next decade. Our goal with MoneyHash is to equip merchants to tackle these multifaceted challenges, transforming payment management from a challenge into a strategic advantage.”
MoneyHash collaborates with payment providers to offer merchants a streamlined solution for managing their payment stacks. It features a unified API for both incoming and outgoing transactions, customizable checkout options, sophisticated transaction routing with fraud prevention, optimization of failure rates, and comprehensive reporting tools. Additionally, the platform supports recurring payments, virtual wallets, subscription management, and payment links, effectively delivering a “one-stop solution” for merchants.
Just like a16z-backed companies such as Payrails, Spreedly, Zooz, and Primer in the U.S., U.K., and Europe, MoneyHash caters to clients across the Middle East and Africa. Abdelrazik emphasized that the company’s focus on emerging markets and extensive integration network—boasting over 300 pre-integrated APIs with local and international processors and gateways like Adyen, Amazon Pay, Checkout, Fawry, Mono, Stripe, Tabby, and ValU—sets it apart, covering more than 100 markets. Similarly, QED-backed Precium (previously Revio) offers comparable services in the region.
Initially, MoneyHash targeted small merchants but shifted its focus to larger enterprises in early 2024 with the introduction of its enterprise suite, resulting in significant growth.
“While you can achieve many performance enhancements through years of effort and study, integrating our software elevates all performance metrics throughout the payment journey,” remarked CEO Abdelrazik. “We’re looking at aspects like authorization, conversion, and fraud rates, and we cover all bases.”
“We don’t just target a single performance metric to address every problem across the payment chain; enterprises need a holistic approach to tackle multiple challenges. They seek comprehensive solutions spanning the entire payment lifecycle, and that’s precisely what we provide.”
Now, enterprises in sectors including consumer fintech, hospitality, e-commerce, and gaming comprise 35% of MoneyHash’s customer base, a notable tripling since 2024. Prominent clients include the BNPL unicorn Tamara, cloud kitchen giant Kitopi, and e-commerce platform Brands For Less.
According to the head of payments at Tamara, MoneyHash differentiates itself in the region by “creating a significant point of differentiation,” likely alluding to its claims of enabling clients to achieve a 10-20% rise in revenue while reducing go-to-market and development costs by 90%.
Abdelrazik attributes the pre-Series A funding to his company’s robust enterprise pipeline and long-term contracts. He noted that these partnerships resulted in a fourfold increase in processing volume and tripled revenue in the past year, though specific figures remain undisclosed.
Flourish Ventures, a global fintech investor, led the investment round, with participation from Saudi’s Vision Ventures, Arab Bank’s Xelerate, and Emurgo Kepple Ventures. Notable contributors also included Jason Gardner, founder and former CEO of Marqeta (his inaugural investment in the region), as well as existing supporters like GitHub founder Tom Preston-Werner and COTU Ventures.
Compiled by Techarena.au.
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