Masroofi, an Egyptian fintech startup Masroofi announced that it recently concluded a funding round, securing $1.5 million from undisclosed investors. Masroofi specializes in electronic payment services for children, aiming to provide innovative solutions and capitalize on areas with potential for growth.
Founded in 2022 by Mostafa Abdel-Khabeer and Sayed Hosni, Masroofi focuses on providing electronic payment services for children in Egypt.
The Masroofi founders turned down a £16 million offer from investors on the “Shark Tank” program, opting instead for external investment, which resulted in a successful funding round. The $1.5 million investment will support the company’s expansion and operational activities.
Several factors contributed to investors’ decision to invest in Masroofi. The project itself is unique and addresses a significant market gap by targeting the 20 million children aged 5 to 15. This demographic represents a lucrative market with substantial needs and expenses.
The strong partnership between co-founders Mostafa Abdel-Khabeer and Sayed Hosni also played a vital role in building investor confidence. Mostafa brings 16 years of business experience, while Sayed possesses extensive technical expertise spanning two decades. Their reputation and track records within the industry positively influenced investor perception.
The founders’ appearance on the “Shark Tank” program also garnered exposure and generated investor interest. Their decision to reject a substantial offer piqued curiosity and highlighted the potential of Masroofi.
Masroofi’s offerings include a bank card system, with each account featuring three cards, a feature not yet available in Egypt. Masroofi has partnered with Arab Bank to issue these cards and has also signed an agreement with Visa, showcasing their proactive approach to establishing strong partnerships.
Masroofi aims to reach 2 million children nationwide within the next five years. Their initial target audience comprises approximately 4 million children in Cairo, Giza, and Alexandria, along with 2 million children in compounds, international clubs, and schools. The company plans to adapt and grow alongside its customers, catering to their evolving needs across various market segments, including Neo Bank services.
The founders firmly believe that financial technology companies can continue to lead the startup market in Egypt. With a large market and the importance of money management, the financial technology sector naturally holds a prominent position. Furthermore, there is growing interest in sectors like agriculture, health technology, recycling, and artificial intelligence, which are permeating all industries.
While there has been progress in digitization, certain aspects of the financial technology sector in Egypt still require attention, such as remittances from Egyptians abroad, the Islamic economy, and the installment payment system. Moreover, there is a continued need for more financial technology companies in the market. With around 140 such companies in Egypt, opportunities remain abundant due to the country’s large population of over 110 million citizens and numerous governorates.
