Egyptian fintech startup Connect Money has raised $8 million in seed funding to support its expansion goals both within and outside of Egypt.
The funding round was co-led by Egypt-based venture capital firms DisrupTech Ventures, Algebra Ventures, and Lorax Capital Partners, with participation from One Stop Capital and MDP.
Connect Money, launched earlier this year, aims to capitalize on the growing popularity of Banking-as-a-Service (BaaS) platforms by enabling trade companies to issue white-label debit and credit cards.
These cards provide customers with access to various financial services, including payments and credit, without the need for businesses to develop their own technology infrastructure or navigate complex regulatory approvals.
Co-founded by Ayman Essawy (CEO), Wadi Jalil (CTO), and Abdelaziz Sarhan (COO), Connect Money seeks to help businesses effectively bank their customers. “We have seen this in Amazon with payment services and in many other digital platforms. We believe that even traditional businesses are capable of banking their customers and increasing consumer stickiness, to eventually become real banks,” said Essawy.
The platform offers a one-stop solution for both traditional and digital businesses, allowing them to avoid substantial capital expenditures. Instead, businesses pay a subscription fee per card per month, while Connect Money manages the backend operations.
The company’s services include card issuance, Know Your Customer (KYC) procedures, customer support, and mobile banking app development.
Essawy, who previously co-founded the consumer app LuckyOne and was involved in launching the loyalty platform DSquares, highlighted several use cases for Connect Money’s platform.
In the agricultural sector, for example, supply chain companies can use white-label cards to become banks for farmers, facilitating embedded finance solutions that connect businesses to cash users.
The BaaS market is projected to grow greatly, with a recent Allied Market Research report estimating its value to reach $22.6 billion by 2032, driven by a 19.3% compound annual growth rate (CAGR).
Connect Money’s entry into this space aligns with global trends where businesses increasingly adopt BaaS platforms to enhance their financial service offerings, grow revenues, and improve customer experience and retention.
Connect Money joins a nascent but growing list of African fintechs in the BaaS sector, including Nigeria’s Anchor, Maplerad, and Bloc. These platforms are making financial services more accessible by enabling businesses to provide tailored financial solutions to their customers.
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