Project FIN303

Names:
Mahmoud Amr Ahmed 212293
Mohamed Sherif 212143
Ahmed Osama

MoneyFellows
Corporate Finance

Table of Contents

1
1. Introduction 3

2. History 4

3. Sources of Finance 4-5

4. Growth 5

5. Conclusion 6

6. Contribution Sheet 7

7. References 8

2
1- Introduction
Egypt's startup scene, which is known for its inventiveness and spirit of
entrepreneurship, has been thriving lately. Egypt has emerged as a startup hub
due to a growing number of tech-savvy people, intentional government
assistance, and an increasing pool of skilled individuals. The industry spans a
wide range of sectors, including FinTech, e-commerce, health-tech, and
renewable energy, demonstrating the nation's dedication to innovation and its
ability to serve as a regional center for technological growth. Through the use
of a tech-driven platform, Money Fellows, an innovative FinTech startup based
in Egypt, has revolutionized traditional rotating savings and credit associations
(ROSCAs). (Eid. 2022). Money Fellows, a company founded in 2016, allows
its members to pool their funds and take turns getting lump sum distributions,
hence facilitating interest-free credit. Through the creative integration of
contemporary technology and financial inclusion, this method fosters
creditworthiness and financial stability while granting people access to funds
for a range of uses. (El Dabbagh, 2021). Money Fellows is a major player in
Egypt's FinTech scene, meeting the various financial demands of its clients with
an easy-to-use interface and a dedication to financial emancipation. The
entrance of Money Fellows into Egypt's financial environment represents a shift
towards modernizing traditional savings techniques, appealing to a tech-savvy
populace while retaining the community-oriented core of ROSCAs. This
FinTech invention has the potential to enable individuals, particularly those
without access to formal banking systems, to achieve their financial goals in an
efficient and collaborative manner.

2- History

3
Egypt’s startup landscape continues to evolve showcasing the interesting
approach Egypt has taken through the last years. However, it wasn’t always that
way as challenges were a daily routine for newly aspiring entrepreneurs in
Egypt. Although, remarkable promise and potential are shown now in various
sectors in the market regarding startups but regulatory complexities and
infrastructural gaps hindered the development of startups back in the days.
MoneyFellows, founded in Cairo, Egypt emerging as a pioneering fintech
platform solving and revolutionizing credit associations and savings in a form
of “game’ya” (Bata, Y. 2023). Launched in 2016 by Ahmed Wadi and Mostafa
Kandil as co-founders, modernizing and digitizing this old practice and
combining it with the new technical and technological developments that Egypt
has shown over the years. MoneyFellows experienced notable growth,
attracting funs and getting recognition for its innovative approach to the non-
banking financial services sector in Egypt.

3- Sources of Finance
MoneyFellows utilizes various sources of finance to sustain and grow its
operations:
1. Venture Capital: MoneyFellows have attracted funding from venture capital
firms to provide them with enough capital to grow and develop
technological aspects and other operations. Two of the companies that
contributed to raising capital where CommerzVentures and Arzan Venture
Capital, they contributed by investing $31 million USD.

2. Angel Investors: are early-stage financing often comes from individual

investors providing capital for equity in the company such as Ahmed Wadi.

3. Debt Financing: MoneyFellows if needed might leverage debt instruments

such as loans or other lines of credit in order to raise capital.

4. Revenue Generation: MoneyFellows generate revenue through service fees

or commissions charged on transactions done on their platform so this

4
 revenue is an internal financing which contributes to the growth of the
company.

So, combining these sources of finance allows MoneyFellows to sustain and

grow its operations within the non-banking financial services sector in
Egypt.

4- Growth

MoneyFellows have indeed grown in the market expanding its user base and
services since it was established. Sources of finance have evolved through
every stage at MoneyFellows (Hussein, H. 2020).
Early stage before significant growth: Founder investments were made by
Ahmed Wadi and Mostafa Kandil to kickstart operations and develop in the
early market.
Growth stage after market expansion: Venture Capital Funding started to
appear for startups in Egypt and so MoneyFellows took the chance and
found two main Ventur Capitalists to invest in the startup and those were
CommerzVentures and Arzan Venture Capital and these investments
allowed for further expansion and market penetration.
So, the growth shown by MoneyFellows is sufficient enough to fuel up and
diversify its sources of finance expanding its operations and services.

5- Conclusion

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In conclusion, Egypt has established itself as a center for entrepreneurial activity
and innovation thanks to its booming startup culture. Egypt has shown its
commitment to promoting technology progress across a range of industries,
including financial technology, e-commerce, health-tech, and renewable energy.
This is due in part to the country's increasing population of tech-savvy citizens,
government support, and a pool of highly qualified experts.

Money Fellows is one well-known firm creating waves in Egypt's financial

technology scene. Through its tech-driven platform, Money Fellows, founded in
2016, has revolutionized traditional rotating savings and credit associations, or
ROSCAs. Through lump sum payments and the option to pool funds, Money
Fellows members can get interest-free loans, fostering financial stability,
creditworthiness, along with simple access to funds for a variety of uses. Due to its
easy-to-use interface and dedication to financial independence, the organization
has become a significant participant in Money Fellows' funding sources have
changed along with the company's market expansion, user base growth, and service
offerings. Early operations and development were fueled by founding funding from
Mostafa Kandil and Ahmed Wadi. Money Fellows took advantage of the growing
industry and the availability of venture capital funding for Egyptian businesses by
securing investments from well-known venture capitalists such as
CommerzVentures and Arzan Venture Capital. These expenditures have
accelerated service diversification, market penetration, and growth.

All things considered, Money Fellows' success demonstrates its flexibility and
availability to a variety of funding sources, which allows for the expansion of its
business and service offerings. The company's accomplishments serve as an
example of how Egypt's startup scene is inventive and dynamic.

6- Contribution sheet
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Name Part Done
Mohamed Sherif Introduction
Mahmoud Amr History & Sources of Finance
Ahmed Osama Growth & Conclusion

7
7- References
 Eid, W. M. (2022). Business accelerators as an entrepreneurial place for
promoting entrepreneurship in Egypt. In Entrepreneurial place leadership:
Negotiating the entrepreneurial landscape (pp. 91-109). Emerald Publishing
Limited.
 Abdel Malak, M., Hassan, I. E. S., El Dabbagh, F., & El Baradei, L. M. (2021).
Startups and Human Capital Management in Egypt: In Search of Decent Jobs.
 Bata, Y. (2023). Impact of culture on global growth for startup projects: a comparative
study of three countries: Egypt, Finland, and Saudi Arabia.
 Hussein, H. (2020). The impact of financial technology on financial inclusion: the case of
Egypt. IOSR Journal of Economics and Finance, 11(6), 35-51.