The pre-seed funding round in the remittance-focused fintech startup Balad, which is based in Cairo was led by the Egyptian venture capital firm Acasia Ventures.
The funding round raised seven figures in USD. Launch Africa, Future Africa, V&R, Magic Fund, First Circle, Sunny Side, and a few family offices were among the investors who participated in the round.
Balad is a remittance-driven financial service provider (RemTech) that was established in 2022 by Adham Azzam, Sally Asaad, and Mohamed Assem.
The company’s primary customers are migrants and the families of migrant workers. The new business venture promises lower transfer fees and immediate delivery of inbound remittances through the use of prepaid Balad cards.
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One person out of every seven on the planet participates in the practise of sending or receiving remittances, with a total of $700 billion moving across the world each year. Egypt is the fifth-largest country in terms of the amount of money that is received through remittances, and a sizeable section of the country’s population that does not have access to banking services rely on these transfers as their principal source of income.
The current transfer fees run anywhere from 4% to 11%, and in some instances, it can take more than a week for transfers to reach their intended receivers. In addition, migrants in host nations and their relatives in home countries are underbanked and frequently do not have access to fundamental financial services like credit, savings, and insurance. This is a problem in both countries.
It is the goal of the founders of Balad to remove monetary obstacles for this demographic by streamlining the process of sending digital remittances to migrants and their families, providing recipients with fast access to cash transmitted to them at reduced prices, and getting them started on the path towards digital financial literacy.
Their objective is in line with the United Nations’ tenth Sustainable Development Goal (SDG), which calls for lowering the worldwide average charge for remittances from 7% to 3% during the next ten years and boosting the financial inclusion of populations that are currently excluded from the economy.
What the Investment Will Be Used For
The investment will be used towards the completion of integrations with Balad’s banking partner, the launch of Balad’s remittance platform, the development of the necessary technology for the platform, the hiring of new team members, and the acquisition of essential licences.
The founding team of Balad is comprised of well-rounded individuals that have substantial experience working in the investing, technology, and finance industries. For the past five years, Azzam has been an extremely successful businessman in Egypt and the UAE. Prior to that, he spent 15 years working in the financing and investment industry for organizations such as the International Finance Corporation (IFC) and a variety of European institutions.
Asaad worked at Commercial International Bank (CIB) for the better part of 17 years, during which time she had a variety of responsibilities there, including those in which she oversaw innovation management and partnerships with fintech companies and startup businesses. Assem has more than 20 years of expertise in the fields of software engineering and technical management in Europe, the Middle East, and Africa. He has also directed technology teams in various Egyptian fintech companies.
Remarks From Acasia Ventures Managing Partner
“Acasia Ventures has been an instrumental lead investor for our pre-seed round, as it supported the founders from the start and facilitated our access to other funding partners,” Azzam said. “We are excited to leverage Acasia Ventures’ expertise, African connections and synergies with its portfolio companies.”
“Balad is led by a seasoned executive team that has demonstrated its ability to bring such a vital product to the market,” Acasia Ventures Managing Partner Aly El Shalakany said. “Its offering is very unique and distinctive in that it provides remittance receivers with a quick and cheap solution to financial access, broadening the umbrella of financial inclusion across Egypt and the GCC.”
This is the very first round of funding for Balad.