By digitizing the "gam'eya," a long-standing collective savings tradition in Egypt and across the Arab world, this Egyptian startup is making it easier for millions of users to participate. With investor backing, the company now has its sights set on expanding internationally.

MoneyFellows, an Egyptian fintech startup, has developed a mobile application that structures, secures, and digitizes the collective savings method known locally as "gam'eya." Founded in Cairo in 2018 by Ahmed Wadi, the company announced on Monday, May 5, that it had successfully completed a $13 million funding round to support its expansion into other African and Middle Eastern markets.

To use MoneyFellows' various services, users create an account with their personal information. The core principle mirrors the traditional model: users form a group where each member contributes a fixed sum at regular intervals. In each cycle, one member receives the total pooled amount.

"If we run circles of 10 people each and only find nine members for some, we step in to fund the missing one. Instead of canceling the group, we finance one slot, which activates and monetizes the remaining nine," Ahmed Wadi told TechCrunch.

MoneyFellows' innovation lies in structuring this process through algorithms, a participant rating system, and a user-friendly interface, leading to greater transparency, regularity, and enhanced security without the need for traditional banking services.

The startup aims to become a significant player in digitized community savings. By targeting a demographic often excluded from conventional banking while addressing tangible financial management needs, MoneyFellows aligns with the broader push for financial inclusion.

The mobile application is available on both iOS and Android platforms, with over 5 million downloads according to the Play Store. However, the fintech firm claims more than 8 million downloads, with the equivalent of over 7 billion Egyptian pounds (approximately $138 million) managed on the platform.

By Adoni Conrad Quenum,

Editing by Feriol Bewa