Egypt-based fintech startup, MoneyHash, has recently announced it has secured seed funding of $4.5 million. This funding aims to enhance their payment technology and promote their growth in the Middle East and Africa (MEA).
The funding round was led by COTU Ventures and Sukna Venture, with participation from other investors such as RZM Investment, Dubai Future District Fund, VentureFriends, and individual investors such as Tom Preston-Werner (the founder of GitHub and investor in Stripe), along with other strategic investors and operators.
Two years prior to this, MoneyHash had raised pre-seed funding worth $3.5 million, also led by COTU Ventures. MoneyHash was established in 2020 by co-founders Nader Abdelrazik, Mustafa Eid, and Anisha Sekar. It is a platform that simplifies payment processes for merchants in the MEA region through its unified payment APIs.
Merchants and businesses often collaborate with multiple payment providers to ensure the efficient functioning of their platforms. However, integrating various payment solutions can lead to several challenges, including operational inefficiencies, technical difficulties, and delays.
These challenges are amplified in the MEA region due to several factors like differences in currency, diverse payment methods, and the isolation of nation-states.
MoneyHash claims to address these issues with its unified-API system. It enables merchants or companies to integrate channels for both receiving and sending funds, customize their checkout process, facilitate transaction routing, and have a center for transaction reporting.
In addition to its core services, MoneyHash provides tools that offer features like virtual wallets, subscription management, and payment links.
CEO Nader Abdelrazik pointed out that just 10% of all payments processed in the MEA region are digital. This puts MoneyHash in a unique position to take advantage of the upcoming wave of digital payment adoption. To effectively navigate the emerging payment market in the region, the team at MoneyHash understands the need for patience, sustained effort, and a dedication to learning.
Regarding MoneyHash’s progress with merchants over the past year, Abdelrazik commented, “Businesses appreciate our wide network of integration not just for coverage, but also for expertise. When they realize that we performed all these integrations internally, they value our team’s depth of knowledge and expertise. We guide them through complex questions about payments, ensuring they are prepared for the future.
According to MoneyHash, the platform currently has 50 active paying customers, without offering a free tier. The charges for its Software as a Service (SaaS) and transaction fees start at $500 and 0.4%, respectively. As per Abdelrazik, the costs adjust depending on the size of the enterprise; with an increase in the SaaS fees and a decrease in the transaction fees for larger entities. The reason for these changes is due to the volume involved.
Amir Farha, Founder and General Partner at COTU Ventures, shared his thoughts on the investment, expressing his belief in the potential of MoneyHash’s platform to maximise the benefits of digital payments in the region.
