Fintech start-up Dopay has closed a $13.5 million Series A extension round supporting the expansion of its digital payroll and payments platform for unbanked and underbanked workers in emerging markets.
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 a significant fintech opportunity 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, said: “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.”
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 whie employees gain instant and secure access to banking facilities, regardless of their earnings
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.”
