dopay, a financial technology (fintech) company focused on providing digital payroll and payment solutions for unbanked and underbanked workers in emerging markets, has successfully secured $13.5 million in an extension to its Series A funding round. This latest investment brings the company’s total Series A funding to $31.5 million.
The funding round was led by Argentem Creek Partners, with participation from existing investors. The company plans to utilize the funds to accelerate its expansion within its initial market, Egypt, while also developing new financial services and broadening its multi-bank, multi-country platform to other regions.
Founded in 2014 by Frans van Eerse and Roel Van Eersel, dopay’s virtual banking platform addresses a significant challenge in emerging markets by enabling digital cash payments from employers to workers and beneficiaries. This innovative approach has garnered considerable interest from investors who recognize the potential impact of integrating unbanked workers into the formal financial system.
“We are thrilled to have secured this funding, which validates our mission to promote financial inclusion for millions of workers in emerging markets,” said Frans van Eersel, Founder and CEO of dopay. “This investment will enable us to enhance our platform, expand our reach, and launch new products that will empower our customers with greater financial control and access.”
The company’s focus on Egypt, where over 60% of workers primarily rely on cash, aligns with the Egyptian Central Bank’s vision of digitizing payments and fostering financial inclusion. dopay’s success in this market is expected to serve as a model for expansion into other emerging markets with similar challenges.
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, expressed confidence in dopay’s approach, stating, “dopay’s business model not only fosters long-term customer relationships but also provides a solid foundation for offering a wider range of financial products.”
Existing investor and board member, Kaj-Erik Relander, echoed this sentiment, highlighting the vast opportunity presented by the large underbanked population and dopay’s robust platform. He reaffirmed his support for the company’s mission to revolutionize financial services in emerging markets.
dopay’s expansion plans include the development of a self-financing lending model in collaboration with partner banks, which will leverage deposited funds to create a sustainable lending portfolio. Additionally, customers can anticipate new financing products seamlessly integrated into the platform, further enhancing their overall experience.
