Cairo-based fintech Masroofi has closed a US$1.5 million investment round from undisclosed investors, according to the company.
Masroofi identified a market gap by targeting the segment of 20 million children between the ages of 5 and 15. This demographic has substantial needs and expenses, making it an attractive market opportunity for investors.
Founded in 2022 by Mostafa Abdel-Khabeer and Sayed Hosni, Masroofi focuses on digital payment services for children, aiming to provide new and advanced solutions with areas for growth.
The new round will enable Masroofi to grow its customer base, covering its evolving needs in various segments of the market, including offering Neo banking services.
Neo banking services are those that offer online banking only to customers with no physical existence.
The startup’s primary focus is electronic payment services for children in Egypt. By offering advanced policies tailored to the Egyptian family’s needs, Masroofi aims to enhance financial inclusion for children between the ages of 5 and 15. This aligns with the government’s plans for digital transformation and financial technology adoption.
One of the key offerings from Masroofi is a bank card system. Each account provides three cards, a unique feature not yet available in Egypt. The company successfully partnered with the Arab Bank to issue these cards and also signed an agreement with Visa, demonstrating their swift and decisive steps in establishing strong partnerships.
Masroofi’s ambition is to reach 2 million children nationwide within the next five years. Their initial target audience includes approximately 4 million children in Cairo, Giza, and Alexandria, along with 2 million children in compounds, international clubs, and schools. Masroofi aims to grow with its customers, covering their evolving needs in various segments of the market, including offering 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 essential role of money management, the financial technology sector naturally holds a prominent position.
Although there is progress in digitization, certain aspects of the financial technology sector in Egypt still require attention. These include remittances from Egyptians abroad, the Islamic economy, and the installment payment system.
The founders of Masroofi, Mostafa Abdel-Khabeer, and Sayed Hosni, turned down an offer of 16 million EGP from investors in the “Shark Tank” program. Instead, they sought external investment, which culminated in a successful financing round. There is a need for more financial technology companies in the market. With around 140 such companies in Egypt, opportunities remain high due to the country’s large population of over 110 million citizens and the vast number of governorates.
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