While much of the venture capital flowing into African fintech has historically pooled in Nigeria, Kenya, and Egypt, Morocco is increasingly carving out a niche for “embedded” retail finance.
WafR, a Casablanca-based startup that turns traditional retail outlets into digital financial hubs, has closed a $4m oversubscribed seed round. The investment was co-led by LoftyInc Capital, Attijariwafa Ventures, and Al Mada Ventures, with participation from UM6P Ventures, First Circle Capital. The new funding follows a $1.5m investment in February 2025 by a syndicate of investors led by Italy’s Kili Ventures.
The capital injection marks a significant vote of confidence in Morocco’s ability to transition from a cash-heavy economy to a mobile-first digital ecosystem.
The Problem: A “Cash is King” Economy
Despite a sophisticated banking sector, Morocco remains one of the most cash-reliant economies in the region. According to World Bank and IMF data:
- 89% of transactions are still conducted in physical currency.
- Only 33% of adults hold a formal bank account.
- Bank card usage accounts for less than 9% of total transactions.
WafR’s strategy sidesteps the traditional banking hurdle by meeting consumers where they already are: the hanout (small grocery store). By providing proprietary technology to these micro-retailers, WafR enables them to facilitate mobile top-ups, domestic remittances, and cash-in/cash-out services.
Traction and Scaling
Founded in 2021 by Ismail Bargach and Reda Sellak, WafR has transitioned from a loyalty-app pilot to a critical piece of financial infrastructure. The startup’s growth metrics suggest a rapid adoption curve:
- Merchant Network: Onboarded nearly 20,000 active merchants, up from 8,500 just a year ago.
- Growth Rate: Reporting a 29% month-on-month increase in transaction volume.
- Market Opportunity: Targeting a financial services market valued at $16.5bn, which includes $1.5bn in telecom top-ups and $10bn in international remittances.
“The world is shifting from cash and traditional banking to mobile,” says co-founder Ismail Bargach. “Our vision is to become the primary financial account for sending money and making payments in Morocco.”
Why the Investors are Biting
The composition of this round is as notable as the amount. The presence of Attijariwafa Ventures (the VC arm of Morocco’s largest bank) and Al Mada Ventures (the private equity fund of the Moroccan royal family’s holding company) suggests that the “incumbents” see WafR as a necessary partner rather than a threat.
For LoftyInc Capital, the move represents a strategic bridge into North Africa. The firm, known for early bets on unicorns like Flutterwave, is looking for models that have already succeeded in Sub-Saharan Africa — such as M-Pesa in Kenya or Wave in Senegal — and adapting them to the more regulated Moroccan environment.
The Road Ahead
The $4M in new capital is earmarked for two primary objectives:
- Network Expansion: Moving toward a target of 100,000 retailers to ensure geographical ubiquity.
- Product Diversification: Expanding beyond simple payments into more complex financial products, such as micro-insurance and credit scoring for small merchants.
However, challenges remain. Converting a population accustomed to the anonymity and tangibility of cash requires more than just tech; it requires trust. WafR is betting that the local shopkeeper — a figure of high social trust in Moroccan neighborhoods — is the best agent to bridge that gap.