In a region where most digital lenders depend heavily on borrowed capital, Cairo-based fintech MoneyFellows is carving a different path—one that doesn’t rely on debt to scale. The company, which digitizes traditional savings circles known as ROSCAs (Rotating Savings and Credit Associations), has just secured $13 million in pre-Series C funding to kickstart its regional expansion.
Led by Casablanca’s Al Mada Ventures and Nclude by DPI, the round also drew support from Partech Africa and CommerzVentures, pushing MoneyFellows’ total raised capital to over $60 million.
Unlike many African fintechs still chasing profitability, MoneyFellows has already hit that milestone in Egypt. Since its 2016 launch, the platform has grown to serve more than 8.5 million users. Founder and CEO Ahmed Wadi credits this to a lean approach and a clever reimagining of an age-old savings tradition that avoids the need for working capital.
“We’ve cracked the model,” said Wadi. “We lend billions without touching our balance sheet—and we’ve done it profitably.”
Digitizing a Centuries-Old System
ROSCA systems, deeply rooted in African and Asian cultures, rely on trust. In Egypt, they’re known as gam’eya; in Nigeria, as esusu or ajo; and in India, as chit funds. A fixed number of participants contribute money to a shared pool, and each month, one person gets the full amount. It’s a social, informal alternative to credit and savings—but until now, it’s remained largely offline.
MoneyFellows changes that by offering a digital platform where anyone can join or start a ROSCA-style “circle” through its mobile app. Using behavioural data and credit scoring, the platform matches savers and borrowers, automating payouts and minimizing default risk.
The beauty of the model lies in its simplicity and capital efficiency. MoneyFellows only steps in with working capital when a group has a vacant slot—typically just 7–8% of cases. This light-touch approach keeps financial risk low, a stark contrast to Buy Now, Pay Later providers or digital lenders who carry full loan book exposure.
Profitable Growth Meets Regional Ambition
The new funding serves as a bridge to a much larger Series C round expected next year. It will also help the company secure additional working capital from local banks to support faster circle formation.
But MoneyFellows’ sights are set beyond Egypt. After nearly a decade fine-tuning its platform, the fintech is preparing to launch in Morocco by the end of the year. It has already secured regulatory green lights and local partnerships.
Morocco offers fertile ground for expansion: a large unbanked population, a strong culture of informal savings (known locally as daret), and an increasingly digital consumer base. The company also expects the upcoming 2030 FIFA World Cup to drive broader fintech adoption.
The challenge, however, will be scaling to markets where ROSCAs aren’t as culturally ingrained or where formal banking dominates. But Wadi remains confident.
“Digitizing ROSCAs isn’t like launching a simple loan app,” he explained. “It took years to build the engines that balance risk, behaviour, and trust in real time. But the payoff is a model that grows virally and organically.”
The fintech has already launched a card product to enable users to receive payouts, make repayments, and spend within a partner merchant network. Next on the roadmap: investment tools, insurance products, payroll integration, and cross-border remittance features. These additions could position MoneyFellows to compete with Egypt’s leading digital banks like Telda, Lucky, and Khazna.
With more than $50 million already facilitated through its platform and partnerships with over 350 regional entities, MoneyFellows is aiming to reshape informal finance across Africa and South Asia—one digital circle at a time.
