EGYPT – Dayra, Cairo-based fintech startup, has raised a US$3 million pre-Seed debt and equity investment from Tanmiya Capital Ventures, EFG EV Fintech, EFG Hermes and Y Combinator, as well as multiple angel investors.
The investment came shortly after Dayra received backing from Y Combinator and joined its Winter 21 batch.
Funding has been received by YC and it has been utilised to grow the startup’s team. According to reports, the startup plans to double its team, expand the company and create new product features with the newly secured funding.
“We are thrilled to be part of YC’s W21 batch and to close our pre-seed round.”Omar Ekram – Founder and CEO, Dayra
“This is a key milestone in realising our vision of providing the most accessible financial services solution in MENA and delivering digital financial services to millions of financially excluded individuals, leveraging on our strategic partnership with EFG Hermes.”
Founded in 2020 by Omar Ekram, the fintech startup aims to provide a range of financial services to unbanked gig-workers and micro-businesses in the region.
According to reports by the startup, only 30% of 105-million Egyptians are banked indicating that a large majority of the population solely relies on cash transactions.
Traditional financial service providers such as banks require proof of income which is difficult for gig-workers and micro-business owners to present and ultimately open a bank account.
Overall, this results in financial exclusion in the country, a lack of transactional data, and financial identities of Egyptians. In addition, this hamstrings companies when it comes to paying contractors, gig-workers, and customers.
Gig-workers and micro-businesses have turned to micro-lenders, with exorbitant interest fees, manual investigations, a lengthy process, and high rejection rates.
As a result of the growing financial exclusion in Egypt, Dayra has created an innovative solution targeted at the unbanked community in the country.
“We are thrilled about partnering with Dayra and look forward to seeing them through on a path of success,” Mahmoud El Zohairy, CEO EFG EV Fintech said.
“Dayra’s unique go-to-market approach helps and empowers gig economy participants while alleviating working capital stress on their employers in a seamless manner, something that the market is in need of right now.
“Thanks primarily to the world-class team Dayra has put together, including a founder with first-hand knowledge of the financial system as well as deep know-how in the tech space, we are excited to see what they have in store for the market.”
Using API integrations, Dayra is able to offer unbanked gig-workers and individuals financial solutions such as virtual bank accounts, prepaid cards, and easy access to credit at lower costs than traditional lenders.