Unbanked workers in the GCC region receives a financial boost as Now Money, a digital banking solution based in Dubai, secures a $7 million investment to expand its services.
In a significant move for the fintech industry in the Gulf, Now Money, a Dubai-based company, has raised $7 million in a fund round. The investment will enable Now Money to expand its digital financial services to more migrant workers in the region.
Founded in 2016, Now Money provides digital accounts to offer low-cost remittance and other financial services to migrant workers in the Gulf. The company's co-founder, Katherine Budd, noted that digital solutions have become an urgent necessity for financial services due to Covid-19.
Ian Dillon, the other co-founder of Now Money, stated that the funding is a significant milestone for the company. He also mentioned that Anthemis Exponential Ventures and Commercial Bank of Dubai played a critical role in the fund round. The fund round was led by Anthemis Exponential Ventures and joined by Knuru Capital, Wamda, Commercial Bank of Dubai, DIFC FinTech Fund, Accion Venture Lab, Greenhouse Capital, Hambro Perks' Oryx Fund, and others.
The engagement of Now Money's app users doubled in 2020 due to the Covid-19 pandemic. Now Money partners with businesses to provide their low-income employees with a Visa debit card and a mobile app for accessing financial services like mobile top-ups, bill payments, and remittances. Businesses also receive a digital payroll solution from Now Money for easy salary transfers.
Now Money offers help with onboarding through training sessions for workers. The startup is currently available in the United Arab Emirates and plans to expand to Saudi Arabia using the latest funds. Vica Manos, Partner at Anthemis Group, stated that Now Money provides fair and sustainable access to finance, and has the potential to change the face of financial services in the region.
Other Tech Startups in the Gulf
The outward remittances business in the Gulf is a significant one with expats sending tens of billions of dollars every year. Many startups, banks, and telecom companies are investing in digital solutions to offer remittance services. For instance, STC Pay in Saudi Arabia is one of the notable startups that received a $200 million investment from Western Union.
Another startup, Fahy Studios, a Saudi gaming startup, raised $1.75 million to build global games from Saudi Arabia. Meanwhile, Gathern, a Saudi vacation rental platform, raised $72 million at a valuation of over $266 million and is eyeing an IPO.
These investments are part of a broader trend of tech startups in Dubai, Saudi Arabia, and the United Arab Emirates receiving funding to grow and expand their services.
Zubair Naeem Paracha, founder of our xA tech and startup enthusiast, is also building Qraar, a career discovery and development platform for millennials in MENA. These initiatives demonstrate the growing interest in digital solutions and startups in the Gulf region.
In conclusion, the investment in Now Money is a testament to the growing interest in digital financial solutions in the Gulf. The company's expansion plans and the engagement of its users underscore the need for such services, particularly in the context of the Covid-19 pandemic. As more startups and established companies invest in digital solutions, the Gulf region is poised to see significant changes in the financial services landscape.
