Egypt’s Fintech Startup Raises US$5m Pre-seed Funding 1 Month After Launch

Barely one month after launch, a North Africa fintech startup, Telda, has raised US$5 million pre-seed funding. The fund is expected to help the Egypt-based company solidify its operations.

The digital bank was launched by tech entrepreneurs, Ahmed Sabbah, Swvl’s co-founder and former CTO, and Youssef Sholqamy, ex-senior engineer in Uber’s infrastructure team. Telda helps the millennials and Generation Z meet their financial needs seamlessly.

Described as “the first digital banking experience in Egypt”, Telda started strong with over 30,000 sign-ups in its first month. The company said the funding would help it build on its impressive start.

US-based Venture Capitalist, Sequoia Capital led the round, which is also the company’s first investment in the Middle East and North Africa (MENA) region. Other investors that participated in the Telda round are Global Founders Capital and Class 5 Global.

According to Disrupt Africa, Telda is also the first company to receive a license from the Central Bank of Egypt under the new Banking Agents regulations, empowering it to issue cards and on-board customers to its digital app.

On the app, users are issued a Mastercard-powered card after can setting up an account with their phone number and national IDs. They can use the card for online transactions, including cash withdrawals. Users can also receive money from anyone in Egypt beyond using the international bank account number (IBAN) that they receive for their digital account.

“We refer to Telda as “The Money App”. It is the first digital banking experience in Egypt, enabling customers to create a free account in seconds, receive a free Telda card to use online, in stores and to withdraw cash from any ATM worldwide and pay bills all directly from their phone. Telda customers will also be able to send and receive money instantly and for free from friends, family and anyone with a mobile phone, as easy as sending a Whatsapp message,” Telda co-founder, Sabbah said.

https://atomic-temporary-203083154.wpcomstaging.com/2021/05/05/mtn-is-prepping-to-shape-africas-fintech-landscape-by-2022/

Sequoia Capital partner George Robson expressed optimism in the investment and tied the company’s decision to Egypt’s large youth population.

“There are many parallels between Brazil and Egypt. Both countries boast a large, young, talented and tech savvy population with a strong appetite to innovate. We are delighted to partner with Telda and earmark our first investment in the region,” he said.