PAYDAY, an emerging Tunisian startup operating at the intersection of fintech and insurtech, has successfully closed its inaugural pre-seed financing round. This pivotal funding event secures the company’s early growth and validates its innovative approach to financial wellness.
The financing round was led by UGFS North Africa (United Gulf Financial Services), a significant venture capital player in the region. Further strategic participation came from the TALYS Group and BioProtection SA, bringing together a diverse mix of expertise. This capital infusion has set the company’s valuation at $3 million, marking a major milestone in PAYDAY’s expansion strategy.
PAYDAY’s core mission is to enhance financial well-being and inclusion across Tunisia and eventually, the wider region. It achieves this through a unique, dual-component financial model:
- Salary-Backed Financing: Offering employees flexible access to their earned wages before the traditional payday, providing liquidity and helping manage unexpected expenses.
- Micro-Takaful Protection: Integrating micro-insurance protection based on the Takaful (Sharia-compliant insurance) model. This provides essential, inclusive coverage to shield individuals from financial shocks.
Dr. Mohamed Anouar Gadhoum, Co-founder and CEO of PAYDAY Takaful, highlighted the strategic value of the investors:
This new round of funding brings together a venture capitalist, a leading technology player, and a strong industrial group… This alliance strengthens PAYDAY’s ability to develop its services and ensure the scalability of this innovative solution, serving businesses and their employees.
Despite its relatively recent launch in 2024, PAYDAY has already demonstrated robust market fit. The startup has recorded an impressive operational volume, executing over 10,000 transactions that represent a cumulative value exceeding 8.2 million Tunisian dinars. This initial traction confirms the strong demand for its financial solutions.
Building on this successful momentum, PAYDAY is now strategically evolving beyond its initial offering. The company is transforming into a comprehensive financial and insurance aggregator. This new phase involves actively integrating banks, microfinance institutions, and insurers onto its platform.
This evolution will allow PAYDAY to extend its inclusive services, reaching not only its original target of businesses and their employees but also serving individuals directly. Through this significant expansion, PAYDAY aims to establish itself as a regional benchmark platform for financial well-being and inclusive protection, ultimately fostering a more accessible and resilient financial ecosystem throughout North Africa.
