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Cairo-based fintech startup Dayra has joined Y Combinator’s (YC) Winter 21 group and secured the largest debt and equity Pre-Seed round in the region with a total of $3-million received.
The Pre-Seed round of funding was led by Tanmiya Capital Ventures, EFG EV Fintech, EFG Hermes, and Y Combinator, as well as multiple prominent angel investors.
Dayra has secured $3-million
Omar Ekram, the founder and CEO of Dayra comments on the funding secured and joining the Y Combinator.
“We are thrilled to be part of YC’s W21 batch and to close our pre-seed round. This is a key milestone in realising our vision of providing the most accessible financial services solution in MENA, and delivering digital financial services to millions of financially excluded individuals, leveraging on our strategic partnership with EFG Hermes.”
Funding has been received by YC and it has been utilised to grow the startup’s team. According to reports, the startup plans to double its team, expand the company and create new product features with the newly secured funding.
Founded in 2020 by Omar Ekram, the fintech startup aims to provide a range of financial services to unbanked gig-workers and micro-businesses in the region.
According to reports by the startup, only 30% of 105-million Egyptians are banked indicating that a large majority of the population solely relies on cash transactions. Traditional financial service providers such as banks require proof of income which is difficult for gig-workers and micro-business owners to present and ultimately open a bank account.
Overall this results in financial exclusion in the country, a lack of transactional data, and financial identities of Egyptians. In addition, this hamstrings companies when it comes to paying contractors, gig-workers, and customers.
Gig-workers and micro-businesses have turned to micro-lenders, with exorbitant interest fees, manual investigations, a lengthy process, and high rejection rates.
As a result of the growing financial exclusion in Egypt, Dayra has created an innovative solution targeted at the unbanked community in the country.
Mahmoud El Zohairy, CEO EFG EV Fintech comments on the investment made into a pivotal fintech startup in the region.
“We are thrilled about partnering with Dayra and look forward to seeing them through on a path of success. Dayra’s unique go-to-market approach helps and empowers gig economy participants while alleviating working capital stress on their employers in a seamless manner, something that the market is in need of right now. Thanks primarily to the world-class team Dayra has put together, including a founder with first-hand knowledge of the financial system as well as deep know-how in the tech space, we are excited to see what they have in store for the market.”
Using API integrations, Dayra is able to offer unbanked gig-workers and individuals financial solutions such as virtual bank accounts, prepaid cards, and easy access to credit at lower costs than traditional lenders.
Through an analysis of end-user transactions, the fintech startup can create alternative credit scores and virtual financial identities for gig-workers.
Clients of the startup included gig workers such as delivery couriers, truck drivers, freelancers, and micro-business owners.
Dayra claims to have a monthly growth rate in an excess of 50% since it launched its operations.
Featured image: Omar Ekram, the founder and CEO of Dayra (Supplied).