by k z | Aug 9, 2024 | Investment Analysis, Startups News
New Funding Round Details
Cairo-based fintech startup Lucky One has raised $3 million in a new funding round. On Tuesday, the company announced that it secured this financing through a convertible note. Existing investors, including Lorax Capital Partners, KEM, and DisrupTech Ventures, led the round.
Evolution from Loyalty Solutions to Consumer Credit
Dsquares founded Lucky One in 2019 as a provider of loyalty and rewards solutions. Initially, Lucky One leveraged its network of discount and rewards partners to launch as a consumer product. Over time, the company evolved to offer a physical card and installment-based credit options for shopping with its partners.
Impressive Network and Regional Expansion
Lucky One now provides rewards and offers at over 10,000 websites and stores, giving it the largest merchant network in Egypt. Additionally, the company has expanded its services into Morocco, showcasing its growing regional presence.
Path to Profitability and Future Plans
The fintech startup aims to achieve profitability by the first quarter of 2025. To support this goal, the company will use the new funds to enhance its credit services and drive expansion efforts.
CEO’s Statement on Funding and Growth
Momtaz Moussa, co-founder and CEO of Lucky One, expressed excitement about the new funding. “We are thrilled to close this round successfully. This funding will drive our ambitious growth plans and support our mission to provide accessible consumer credit solutions to underbanked Egyptians. Our investors’ trust reaffirms our commitment to achieving sustainable profitability while creating true value in the Egyptian market.”
Additionally, Moussa emphasized that the company will leverage its solid collection processes and low default rates to scale its consumer credit services effectively.
Looking Ahead: Regional Expansion Plans
Lucky One plans to extend its reach to other regional markets over the next two years. However, the company has not yet disclosed specific details about these plans.
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by k z | Aug 7, 2024 | Startups News
Egypt-based fintech Qardy has secured a seven-figure pre-seed round of investment. Notably, White Field Ventures, Vastly Valuable Ventures, and several angel investors participated. This funding highlights the strong confidence in Qardy’s innovative approach and its growth potential.
Qardy :Innovative Digital Lending Platform
Founded in 2022 by Abdelaziz Abdel Nabi, Asser Yehia, and Tamer El-Manasterly, Qardy is transforming digital lending in Egypt and the MENA region. Specifically, it is the first digital lending marketplace dedicated to micro, small, and medium-sized enterprises (MSMEs). Consequently, Qardy provides essential financing solutions that help MSMEs scale and grow.
Expanding Qardy Platform Capabilities
Moreover, the new investment will significantly enhance Qardy’s platform and enable service expansion across the MENA region. Since its soft launch in late 2022, Qardy has made substantial progress. For instance, it has attracted over 1,000 corporate clients and executed loan transactions exceeding 550 million Egyptian pounds (about $12 million). Therefore, Qardy is making a significant impact.
Tailored Financial Solutions for MSMEs
Qardy’s technology offers a range of tailored financial programs. These programs support MSMEs with their working capital and expansion needs. By connecting businesses with a broad network of financial institutions—including banks, leasing companies, factoring firms, and microfinance organizations—Qardy effectively facilitates essential funding.
Investor Support and Future Plans
Tamer El-Manasterly, COO of Qardy, expressed excitement about this milestone: “We are thrilled to reach this point. The support from our investors has been crucial. As a result, this investment will allow us to enhance our services and expand in Saudi Arabia and the region.”
Backing from 500 Global and White Field Ventures
500 Global has also expressed strong support for Qardy’s mission. Amal Dokhan, Managing Partner at 500 Global, commented, “We are excited to support Qardy. Their work empowers businesses with accessible financial solutions. Indeed, we believe in their potential to drive positive change.”
Similarly, White Field Ventures has shown enthusiasm. Kapil Agrawal, Managing Director, stated, “We are pleased to support Qardy’s vision. Their execution capabilities and commitment to customer solutions align perfectly with our investment goals. Consequently, we look forward to their expansion into Saudi Arabia and beyond.”
Reputation for Excellence
With a strong focus on transparency and efficiency, Qardy has quickly built a reputation for excellence in financial services. As the company continues to innovate and expand, it remains dedicated to revolutionizing financial service delivery and driving MSME growth across the MENA region.
by k z | Aug 6, 2024 | Startups News
SANDBOX’s Fourth Cohort Achievements
SANDBOX, the Accelerator programme dedicated to the growth of tech startups and a key initiative of Oraseya Capital, has proudly concluded its fourth cohort. As part of Oraseya Capital, which operates under the Dubai Integrated Economic Zones Authority (DIEZ), SANDBOX attracted over 1,500 applications. Consequently, seven technology startups received significant investment, with each startup awarded AED 570,000 (USD 150,000) following their success in the programme.
Milestones and Strategic Importance
Hassan Waheed, Vice President of Corporate Finance and Treasury at DIEZ and Partner at Oraseya Capital, commented, “We are incredibly proud of the milestones achieved by Oraseya Capital in startup investments, especially given the few months since its launch at the end of 2023. The substantial interest in the SANDBOX programme, combined with the many innovative and ambitious projects, highlights the strategic importance of this initiative in fostering the growth of small and medium-sized enterprises across various sectors.”
Investment in Promising Startups
Furthermore, Waheed emphasized, “Oraseya Capital has invested in startups demonstrating significant growth potential, characterized by creative ideas and innovative visions. As we aim to transform the advanced technology sector, we look forward to achieving new milestones that align with our efforts to enhance Dubai’s competitiveness as a prime destination for global investments.”
In addition to these new investments, Oraseya Capital has taken a leading role in an investment round for Growdash, a Dubai-based SaaS platform that empowers restaurant marketing and operations. Moreover, Oraseya Capital has participated in several investment rounds for startups such as RemotePass, an HR tech-platform for managing remote teams, and iSchool, an EdTech startup focused on upskilling youth with digital capabilities.
The Startups of SANDBOX’s Fourth Cohort
The seven startups that received funding from SANDBOX’s fourth cohort are:
- Qureos: A recruitment tech startup that matches talent with jobs 10x faster.
- Herogo: A sustainable food tech subscription platform for fruits and vegetables.
- Lisan: A deeptech generative AI startup specializing in Arabic linguistics.
- Sthrive: A B2B SaaS platform for retailers aimed at boosting sales and employee performance.
- Zoya: A fintech startup simplifying halal investing for Muslims worldwide.
- JobEscape: A productivity startup enhancing freelancers and employees’ skills with AI tools.
- Opteam: A startup leveraging AI-driven optimizations for project management in the construction sector.
Success Stories and Testimonials
Saad Malik, Co-founder and CEO of Zoya, stated, “SANDBOX provided an invaluable foundation for Zoya. The mentorship and supportive community empowered us to refine our startup and prepare for the next stage of our journey. We’re excited to apply these insights as we move forward.”
Similarly, Alex Epure, CEO and Co-founder of Qureos, added, “The SANDBOX Accelerator programme is exceptionally well-structured and adds significant value. Being backed by Oraseya Capital also means the potential for future investment rounds, which is not always the case with other programmes.”
Programme Structure and Benefits
The SANDBOX programme spans five months, divided into two phases. Initially, the “Evaluation Phase” lasts for 8 weeks, culminating in a pitch to the Investment Committee of Oraseya Capital. Successful startups then enter the 3-month SANDBOX Accelerator programme, each receiving an investment offer from Oraseya Capital. This programme emphasizes a mindset of experimentation, focusing on revenue-generating activities and further fundraising efforts.
Startups benefit from over 50 hours of workshops covering financial analytics, marketing strategies, and legal compliance. Additionally, entrepreneurs receive more than 30 hours of mentoring from industry experts and have opportunities to network with regional investors.
Looking Ahead
Looking ahead, the fifth edition of SANDBOX will begin in September 2024 and has already received more than 1,100 applications. This continued enthusiasm underscores the programme’s growing impact and success.
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by k z | Aug 2, 2024 | Actionable Tips & Advice
Managing cash flow is a critical aspect of running a successful startup. Effective cash flow management ensures that your business has the necessary funds to cover operational expenses, invest in growth opportunities, and weather financial challenges. Here are some key strategies to help you manage it effectively in your startup.
1. Create a Cash Flow Forecast
Firstly, developing a cash flow forecast is essential for understanding your financial position and anticipating future cash needs. A forecast allows you to project your income and expenses over a specific period, helping you identify potential cash shortages and surpluses. Moreover, regularly updating your forecast ensures that you can make informed financial decisions.
2. Monitor Your Cash Flow Regularly
Next, consistent monitoring of your cash flow helps you stay on top of your financial situation. By tracking your income and expenses weekly or monthly, you can identify trends and address any issues promptly. Additionally, using accounting software can automate this process and provide real-time insights into your cash flow.
3. Optimize Your Invoicing Process
Furthermore, efficient invoicing is crucial for maintaining a healthy cash flow. Sending invoices promptly and following up on late payments ensures timely collections. In addition, offering incentives for early payments or implementing penalties for late payments can also encourage timely payment from your clients.
4. Control Your Expenses
Moreover, managing expenses is just as important as managing income. By regularly reviewing your expenses, you can identify areas where you can cut costs without compromising quality. It is also beneficial to negotiate better terms with suppliers, seek out cost-effective alternatives, and eliminate unnecessary expenditures .
5. Maintain a Cash Reserve
Additionally, having a cash reserve provides a financial cushion to cover unexpected expenses or cash flow gaps. It is wise to aim to set aside enough funds to cover at least three to six months of operating expenses. Consequently, this reserve can help you navigate through tough times and keep your business running smoothly.
6. Leverage Technology
Moreover, utilizing technology can streamline your financial processes and improve cash flow management. Tools like PAYD, a leading payment gateway solution, can simplify your payment collection process. PAYD offers a seamless and secure way to accept payments online, ensuring that your cash flow remains steady and reducing the risk of payment delays.
7. Seek Professional Advice
Sometimes, managing cash flow can be complex, and seeking professional advice can be beneficial. Accountants and financial advisors can provide valuable insights and strategies tailored to your specific business needs.
8. Plan for Growth
Finally, as your startup grows, your cash flow needs will change. Therefore, it is important to plan for growth by reinvesting profits into the business and securing additional funding if necessary. Exploring options such as venture capital, angel investors, or loans can support your expansion while maintaining healthy cash flow.
For more actionable tips and insights on managing your startup, visit kzaad.com. Stay tuned for daily news updates and expert advice to help you grow your business.
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by k z | Jul 22, 2024 | Startups News
Dopay, a fintech startup, has secured $13.5 million in Series A extension funding. This further boosts its mission to enhance financial inclusion for unbanked and underbanked workers in emerging markets. The recent funding round, led by Argentem Creek Partners, follows an earlier $18 million round. Thus, the total Series A funding is now $31.5 million.
Accelerating Growth and Expansion
With this investment, Dopay aims to grow faster in Egypt. It will also launch new financial services and expand its platform to more markets. As a result, this will significantly enhance its reach.
Transforming Payroll Processes
Dopay’s digital payroll platform is a game-changer for cash-based economies. It offers real-time payments and 24/7 access to funds through prepaid Mastercard debit cards. Therefore, it provides a secure, cashless payroll system that transforms employer and worker finances.
Strategic Insights
Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, highlights the importance of a payroll-centric approach. This method integrates unbanked workers into the financial system. Consequently, it fosters long-term customer relationships and lays the foundation for offering more financial products like personal loans and credit cards.
Moreover, Kaj-Erik Relander, an existing investor and board member, emphasizes the growth potential. Dopay’s innovative platform and the vast underbanked population create significant opportunities.
A Vision for the Future
Frans van Eersel, Founder and CEO of Dopay, calls this funding a pivotal moment. It allows the company to leverage deposited funds to create a self-financing lending model. In turn, this approach supports the lending portfolio and enhances customer experience by integrating new financial products.
Conclusion
In conclusion, Dopay is set to revolutionize financial services in emerging markets. It offers solutions that drive economic growth and financial inclusion. As the company continues to innovate and expand, it stands as a beacon of transformation in the fintech industry.
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