Masroofi is an Egyptian fintech business that offers digital payment services to children between the ages of 5 and 15.
The company recently received funding of $1.5 million from investors who wished to remain anonymous. The small company will be able to extend its service delivery capabilities thanks to the sum that was donated.
Why Masroofi is successful
A number of different factors contributed to Masroofi’s success in luring financial backing.
To begin, the company’s forward-thinking items are geared at an underserved demographic: children.
The company capitalized on a potentially lucrative market opportunity by deciding to target a demographic that includes 20 million youngsters who have significant monetary need. In addition to this fact, the founders of the firm, Mostafa Abdel-Khabeer and Sayed Hosni, bring a significant amount of experience to the table.
Abdel-Khabeer worked in the business world for a total of 16 years before becoming a co-founder of Masroofi in 2022. That, in addition to Hosni’s two decades of experience in the field of technology, appeared to leave an impression on the investors. Both were already well-known in their particular spheres of endeavour. Since the beginning of Masroofi, both of the company’s founders have been able to keep a positive connection with one another, which has also been perceived favourably by the investors.
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Why the 16million euros offer was rejected
Another possible explanation is that the company’s founders chose to turn down a funding offer of £16 million while appearing on the popular reality show for entrepreneurs known as Shark Tank. This action not only caused a buzz, but also put Masroofi in the spotlight, which resulted in the attraction of outside investment. Within the next five years, the Egyptian startup anticipates developing a network that includes two million children. Cairo, Giza, and Alexandria are the three primary areas that it focuses on.
Masroofi services for children
The Masroofi company provides a variety of financial services geared towards children, one of the most popular of which is a bank card system. When a parent establishes an account in the name of their children, they are given three cards that function through the use of near-field communication technology. A single tap is all that’s required to engage with a card reader while using an NFC card.
Masroofi worked together with the Arab Bank to bring this card distribution to fruition. In addition to this, it reached an arrangement with the provider of digital payment services, Visa. The mobile application developed by the new company not only functions as an electronic wallet but also provides users with guidance on how to budget their funds and other aspects of financial literacy.
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Egypt’s ambition for financial inclusion
The combination of technology and banking services offered by Masroofi is reminiscent of the Egyptian government’s most recent ambitions for digital transformation and financial inclusion. Already the country in North Africa is home to a number of businesses in the financial technology industry, but there are some unmet needs, such as “remittances from Egyptians abroad, the Islamic economy, and the installment payment system.”
In October of 2018, the Central Bank of Egypt presented a plan for financial inclusion that was intended to be implemented between the years 2022 and 2025. The major purpose is to lessen the number of people who are unable to have access to necessary financial services while simultaneously fostering economic growth. This road map is a significant part of the country’s Vision 2030, which, among other things, aims to broaden the economic base of the country.
Egypt’s financial inclusion plan supports startups by creating a sustainable infrastructure. Many governments’ financial inclusion ambitions depend on fintechs’ flexible services that prioritise historically underrepresented populations. (rural residents).
Fintechs also provide multiple ways for customers to use their services. Mobile apps, ATM cards, and agent banking are suitable for digitally illiterate persons. The Central Bank of Egypt reports 60% financial inclusion for males and 54.1% for women. Despite these numbers, fintechs and the government can yet improve.