Egyptian consumer money app Telda raises $20 million from GFC, Sequoia Capital and Block • TechCrunch

Telda, an Egyptian consumer money app founded by a former Swivel executive Ahmed Sabah It raised $20 million in seed funding last April. The fintech said in a statement that it wants to “improve finance for the MENAP region”.

The first market, Egypt, is one of the highest consumer spending markets in Africa. North African market personal consumption accounts b About 85% of GDP, and only About 4% Gross Domestic Product (GDP) is cashless. Card use in the country is still in its infancy in a cash-heavy society, but startups like Telda are banking on their card products to change the narrative, or at least try.

Speaking to TechCrush last year, Sabah said Telda was licensed by Egypt’s new apex bank, the Central Bank of Egypt (CBE), allowing the company to digitally embarrass cards and customers. However, more than a year after this approval, Telda still has not made the app and card products available to more than 30,000 subscribers.

According to sources TechCrunch spoke to, Telda was unable to raise this much money and survive in the Egyptian market because of issues with Apex Bank, including the need to obtain the proper license to be called a digital bank. Be the epitome of Telda in time. Sabah denied any conflict between the two parties. “We are humbled to be the first company to receive a license in Egypt. Egypt’s commitment to shaping the future of finance and positioning itself as a global fintech hub is demonstrated by the support we received from regulators last year,” he said.

Telda finally received a license from the Central Bank of Egypt (CBE) a few weeks ago to launch in the Egyptian market as a consumer currency and payment app. The company finally went live last month, unveiling its app and MasterCard-enabled card to the public. So far, it has about 25,000 cards and has a waiting list of 110,000 customers. According to a consumer money app, it wants to “understand how people in this part of the world feel about and interact with their money, from money transfers to online/offline purchases to savings habits.”

In a country where 50% of its 100 million people are active smartphone users, two out of three individuals in Egypt do not have access to formal financial services. Telda is one of several fintech apps that have raised token capital to offer these services like rewards, cards, buy now, pay later to individual consumers. Other fintechs include Sympl, Lucky and Khazna.

Last year, Sabbah realized that entering the market with a low-performing product would not differentiate it from the existing large financial institution. Investing in consumer fintech and over-optimizing the first version of a product is imperative, especially on the user experience side, he said.

“We’ve learned that our customers want an intuitive user experience when it comes to banking, just like what they see in the everyday apps they use, social media. We believe that our competition is always cash and this is the toughest competition to face in MENA. “We are laser-focused on changing the way Egyptians feel and interact with their money,” the CEO said at the event.

According to the reviews, in the last year, Telda went back to the drawing board to adjust the product before releasing it to the public. The new funding shows Telda’s continued confidence in what it can bring to the ever-growing Egyptian and MENA fintech market. The consumer money app said the investment will enable it to continue its mission to fully and seamlessly digitize Egyptians’ use of money and the concept of money, including a critical social component for sending, spending and saving money.

Telda’s seed investment has received some of the most prominent names in venture capital. Existing investors who led the round include Sequoia Capital and Global Founders Capital (GFC). A new investor block, formerly known as Square, also participated; It is the fintech giant’s second investment after crypto startup Yellow Card. Telda received a pre-seed of $5 million from Sabah and its founder a month later last May Yusuf Sholkami He founded the company.

Commenting on the investment, Roel Jansen, partner at lead investor Global Founders Capital, said, “We are incredibly excited to further strengthen our partnership with Telda. The company offered a better product than most global consumer payment companies, and Ahmed and Youssef attracted top Egyptian talent in production, engineering and GTM. We are confident that Telda will continue to impress Egyptian customers with its amazing product experience and exceptional service in the coming years.

Source link

Related posts

Leave a Comment

3 × one =