MoneyFellows Raises $13M to Expand Its Group Savings Model Beyond Egypt
Looking for how MoneyFellows is revolutionizing digital savings and why it raised $13 million for expansion? MoneyFellows, a leading fintech company based in Cairo, is redefining group savings through a profitable, debt-free approach to the traditional rotating savings and credit association (ROSCA) model. Unlike many African digital lenders burdened with working capital and loan risks, MoneyFellows has lent billions of Egyptian pounds without taking on debt or balance sheet exposure—an impressive feat that has caught the attention of global investors. Following a successful pre-Series C round, MoneyFellows is now gearing up for regional expansion, signaling a major shift in the African fintech landscape.
MoneyFellows’ Innovative Approach to Digital Lending
MoneyFellows stands out by digitizing one of the world’s oldest financial systems: the ROSCA model. While most digital lenders need significant working capital to scale, MoneyFellows uses behavioral data, credit scoring, and income tiers to match savers and borrowers within their app, maintaining lean operations without overexposing their balance sheet. By bridging traditional informal saving practices with modern technology, the company empowers users to participate in circles or "money pools," expanding financial access while reducing default risks.
The recent $13 million funding round was led by Al Mada Ventures and DPI’s Nclude Fund, with participation from Partech Africa and CommerzVentures. This investment brings MoneyFellows’ total funding to over $60 million, paving the way for larger ambitions in the fintech space.
How MoneyFellows Digitizes and De-Risks ROSCAs
Understanding how MoneyFellows’ app works reveals why it’s attracting attention. Users join or create saving circles where a set number of participants contribute monthly to a shared pool. Each cycle, one member receives the payout, until all participants have collected once. Globally known as esusu in Nigeria, kameti or chit fund in India, and gam’eya in Egypt, these models are deeply trusted but traditionally limited by offline logistics.
MoneyFellows removes those barriers. Their platform optimizes the allocation of slots using advanced algorithms, and when circles have unfilled slots, the company steps in with minimal working capital—keeping risk under 10%. By using scalable tech instead of massive debt, MoneyFellows avoids the pitfalls facing many buy now, pay later (BNPL) providers and traditional digital lenders.
Founder and CEO Ahmed Wadi highlights that fewer than 8% of active ROSCA groups require direct financial intervention from the company—a key advantage that keeps costs low and growth sustainable.
Profitability Milestone and User Growth in Egypt
MoneyFellows’ model is not just sustainable; it’s highly profitable. Having achieved profitability in Egypt, the company now ranks among a rare breed of African fintech startups operating in the black. Since its inception in 2016, MoneyFellows has skyrocketed from 4.5 million to over 8.5 million users. Notably, the average payout per user has nearly doubled, indicating rising trust and increasing value delivered to members.
The company’s organic growth strategy, powered by user referrals and attractive borrowing rates, continues to fuel its expansion. By digitizing a familiar, trusted system, MoneyFellows taps into deep-rooted community behaviors, making user acquisition cost-effective and highly scalable.
New Products: Moving Beyond Savings
Building on its core model, MoneyFellows is broadening its service offerings. The company recently launched a MoneyFellows card, enabling users to receive payouts, make repayments, and spend across a growing network of merchants. Future plans include offering investment products, payroll services, insurance, and remittance solutions—positioning MoneyFellows to compete with rising Egyptian digital banks like Lucky, Khazna, and Telda.
Diversifying into high-margin financial products could significantly boost the company’s revenue streams and increase its average revenue per user (ARPU), an important metric for future investors and stakeholders.
The Challenge of Regional Expansion
Expanding MoneyFellows’ digital ROSCA model outside Egypt isn’t a simple plug-and-play strategy. Wadi acknowledges that scaling required refining the technology extensively. Matching users to appropriate slots, minimizing dropouts, managing default risks, and maintaining user trust are intricate challenges that have stalled many attempts globally.
By investing years into perfecting its algorithms and user recommendation engines, MoneyFellows believes it is uniquely positioned to replicate its success across emerging markets. Early tests in Germany and the U.K. helped the company understand the universal appeal and challenges of digitizing group savings globally.
Why MoneyFellows Is Positioned for Long-Term Fintech Leadership
As competition intensifies in the African fintech ecosystem, MoneyFellows' profitable, low-risk operating model sets it apart. With strategic partnerships with local banks underway to secure additional working capital, the company is poised to grow its circles faster than ever.
Its focus on user trust, scalability, and diversification into new financial services primes MoneyFellows for sustained success—both in Egypt and across the region. For investors, fintech watchers, and users, MoneyFellows represents the next frontier in how traditional financial systems are being transformed by digital innovation.
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