Dopay obtains $13.5 million in Series A extension

Dopay, a rapidly growing FinTech startup providing a digital payroll and payments platform serving unbanked and underbanked workers in emerging markets, announced the closing of a strategic $13.5 million Series A extension round. This funding milestone tops up a previous $18 million Series A funding round and marks a significant step in Dopay's mission to transform cash-based economies by digitising payments and providing financial inclusion for millions of workers.

Dopay, which is part of Hub71, Abu Dhabi’s global tech ecosystem, is an innovative virtual banking platform that digitises cash payments from employers to workers and other beneficiaries, directly tackling one of the most significant FinTech opportunities in emerging markets. The Series A extension funding, led by Argentem Creek Partners with participation from existing investors, will enable Dopay to accelerate its rapid expansion in its initial market, Egypt. Additionally, the company plans to launch a range of new financial services and expand its multi-bank, multi-country platform to other markets. 

Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, commented: “We believe a payroll-centric approach is the key to integrating unbanked and underbanked workers in emerging markets into the financial system. This model fosters long-term customer relationships and presents a strong base for cross-selling financial products such as earned wage access, personal loans, credit cards, business loans, insurance, savings, investments, and more. We are impressed by Dopay’s multi-bank, multi-country platform and are excited to support the company in its next growth stage. We look forward to working closely together with Dopay’s talented team.”

Kaj-Erik Relander, an existing investor and board member at Dopay, stated: “The unparalleled capabilities of Dopay's platform and the significant underbanked population present a remarkable growth opportunity. Our continued support underscores our confidence in Dopay's mission to revolutionise financial services in emerging markets.”

Frans van Eersel, Founder and CEO of Dopay, added: “This funding comes at a pivotal moment, with our growth exhibiting a true hockey stick trajectory. The new funds will help us elevate our platform and, in collaboration with our partner banks, leverage deposited funds to create a self-financing lending model. This model will allow deposited amounts to fuel a lending portfolio, fostering a sustainable and mutually beneficial financial ecosystem. Our customers can look forward to new financing products that will be seamlessly embedded into our platform, enhancing their overall experience.”

Dopay's platform revolutionises payroll by enabling real-time payments, even on weekends and holidays. Each account is equipped with a prepaid debit card, in partnership with Mastercard, providing 24/7 access to funds via ATM withdrawal. Enrolled businesses benefit from a secure and cashless payroll system, with user-friendly interfaces and complete transparency. Employees gain instant and secure access to banking facilities, regardless of their earnings. Dopay's agent banking licence allows for the swift delivery of digital banking services and seamless onboarding of employees and beneficiaries, positioning the company as a leader in Egypt's digital payroll space.