Arzan Venture Capital (AVC) has announced it has strategically invested $4 million in the Egyptian fintech startup, Money Fellows, from its new fund. This significant investment marks a pivotal moment for both Arzan Venture Capital and the startup as they join forces to transform traditional money circles prevalent in the region.
The remarkable surge in Arzan Venture Capital’s investment volume, an unprecedented 81% increase since 2022, has been attributed to the resounding success of their second fund (AVC II) and the imminent launch of their forthcoming third fund (AVC III). The highly anticipated AVC III, which is nearing its first close, aims to make new investments amounting to $60 million on the esteemed Abu Dhabi Global Market (ADGM). Notably, Money Fellows has become a prime focus of AVC III’s investment strategy, with the fund making three substantial investments (amounting to $4M) in the Egyptian fintech startup, already.
Money Fellows’ innovative approach to digitizing the traditional concept of money circles, commonly known as ROSCAs, has garnered significant attention. By providing users with enhanced credit and savings pooling capabilities, the fintech platform offers a scalable, secure, and efficient process. This appeal has led to an impressive $31 million raised in a series B fundraising round in October 2022, with the participation of leading local and global venture capital firms, including Arzan Venture Capital.
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“This is the second investment of our new Arzan VC Fund III and our largest ticket to date. Money Fellows embodies the kind of teams, ideas and products that we love to support; strong teams working on big ideas that change lives across the world. The innovation and uniqueness of the technology developed by the team has resulted in a highly scalable and frictionless experience for its users who traditionally opted out of the ROSCA model due to the many barriers and risks involved. We are excited to be working with Ahmed, the team and our co-investors to make this dream a reality and bring Money Fellows to the rest of the world,” said Laith Zraikat, Partner at Arzan Venture Capital, on the occasion of the series B fundraise last year.
The strategic alignment between Arzan Venture Capital and Money Fellows is underscored by the startup’s unique business model. Money Fellows generates revenue through small service fees and float interest on the money in circulation, a strategy that seamlessly aligns with AVC’s investment approach. The shared vision of empowering individuals and increasing access to credit in the region resonates deeply with AVC’s commitment to supporting transformative startups that fuel positive change.
As a result of AVC’s strategic investments, their diverse portfolio now boasts 46 companies, encompassing emerging players in various sectors, including financial technology, e-commerce, and supply chains. Among the recent additions are notable emerging companies from Saudi Arabia, such as Hala Company and Nerpay Company, alongside Money Fellows and Lucky Company from Egypt.
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The extensive regional presence of Arzan Venture Capital, with offices in Kuwait City, Dubai, Cairo, Amman, Riyadh, and Karachi, reinforces their dedication to providing invaluable guidance and networking opportunities to the startups they invest in. This partnership promises to drive significant growth and foster a dynamic ecosystem for emerging technology companies across the MENA+P region.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard