NowPay, the Cairo-based financial wellness platform has joined Y Combinator and raised new funds in a Pre-Series A round. This was reported by Menabytes. The Egypt startup is currently part of the Winter 2021 (YC W21) batch.
The investments came from Beco Capital, Global Ventures, Foundation Ventures, Endure Capital, and Abderahman ElSewedy. The exact sum of the investment is yet to be disclosed. We earlier shared that NowPay raised $2.1M in a seed round last year.
NowPay was founded by Ahmed Sabry and Mostafa Ashour and enables employers to offer salary advances to employees through their mobile app. Employers need not pay anything for the service, neither does the cash move from their books as NowPay finances the advances.
NowPay offers a sharia-compliant solution that can be used by employees and corporates to request advances on their salaries before the end of the month. No interest fee is charged but the clients pay a small advance fee. Employers then deduct this advance amount from the employee’s salary before paying it back to NowPay.
NowPay has managed over $200 million in salaries while serving top clients such as Vezeeta, Sodic, ITWorx, KarmSolar, Axa, and many others.
The startup also wants to expand across Africa. Dayra, another Egypt startup in fintech is also part of the Y Combinator.