The Cairo-based startup has also revealed that it has raised fresh funds in a Pre-Series A round.
In a double whammy of good news, the Cairo-based NowPay has raised new funds as part of its Series-A round, an announcement made hot on the heels of the fintech startup joining Y Combinator, an American seed money accelerator that focuses on early-stage startups.
NowPay is a Sharia-compliant service that allows employers to give their employees salary advances through their app. While there is no interest, the employees are charged a small fee. The employer is then able to deduct the advance and fee from the employee's salary, and use that amount to settle their balance with NowPay. This way, employees from companies and startups of any size can request an advance at any time of the month.
"At YC, we help talented founders from anywhere in the world access the advice, network, and funding that Silicon Valley has to offer," said Group Partner at Y Combinator Brad Flora. "With NowPay, we see dedicated founders tackling the huge problem of financial wellness in a region of the world that needs more tech investment. It was a clear decision to fund them.”
NowPay plans to use this year's funds to expand into other markets in the region and joins Y Combinator’s Winter 2021 batch alongside another Egyptian startup, Dayra.
Learn more about NowPay here.