PAYDAY, a Tunisian fintech and insurtech startup, has raised $3 million and finished its first pre-seed funding round, laying the groundwork for future expansion.
TALYS Group and BioProtection SA participated in the round led by United Gulf Financial Services (UGFS) North Africa. With this $3 million investment, PAYDAY significantly improves financial well-being for workers with low and moderate incomes.
Digital solutions for financial wellness and inclusion
PAYDAY’s unique platform combines salary-backed financing with micro-Takaful insurance to support financial stability without interest or credit burdens. The firm offers Sharia-compliant microinsurance to safeguard workers from economic shocks and gives them early access to their earned salaries before payday.
This two-pronged strategy helps employees manage risks and liquidity better while lowering business administrative hassles.
Co-founder and CEO Dr Mohamed Anouar Gadhoum explained, “This new round of funding brings together a venture capitalist, a leading technology player, and a strong industrial group. This alliance strengthens PAYDAY’s ability to develop its services and ensure scalability, serving businesses and their employees”.
Rapid growth and strategic expansion
PAYDAY has processed over 10,000 transactions worth over 8.2 million Tunisian dinars since its introduction in 2024, indicating a robust market demand. The startup is leveraging this momentum to expand beyond salary advances and group insurance, establishing itself as a comprehensive financial and insurance aggregator.
It intends to extend inclusive services directly to individuals and businesses by integrating banks, microfinance institutions, and insurers onto its platform.
Due to this strategic evolution, PAYDAY is now positioned as a premier regional platform for ethical, accessible financial services. It is a new entity in the fintech ecosystem of North Africa, offering digital, interest-free solutions that are essential in a region experiencing financial stress and having limited access to traditional credit.
Using the funding, PAYDAY will be able to improve its technology infrastructure, expand operations, and further deepen its impact on the financial well-being of marginalised populations in Tunisia and the broader MENA region.