Egypt-based Dayra closes $3M Pre-Seed funding and joins Y Combinator

Dayra, a Cairo-based Fintech startup providing unbanked gig-workers and micro-businesses with financial services, has closed a debt and equity Pre-Seed round of $3M.

The startup, which has been funded by Tanmiya Capital Ventures, EFG EV Fintech, EFG Hermes, Y Combinator, and multiple prominent angel investors, has also joined Y Combinator’s Winter 21 batch.

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Dayra was founded in early 2020 by Omar Ekram with the chief aim of improving the lives of millions of unbanked individuals in MENA, beginning with Egypt. It empowers companies to provide their unbanked gig-workers and customers with financial solutions, via API integrations, while taking the payment disbursement hassle off those companies, and allowing them to extend their payment terms. Dayra’s financial solutions include virtual bank accounts, prepaid cards, and access to credit.

Analyzing end-user transactions enables Dayra to create alternative credit scores and virtual financial identities for them. Businesses can integrate with the platform in two ways: 1. Offer Dayra’s financial solutions directly from within their app using the API integration or, 2. If they don’t have their own app or portal, they can use Dayra’s app directly.

Prior to starting Dayra, Ekram co-founded private equity fund Tanmiya Capital Ventures, which participated in Dayra’s Pre-Seed round. Ekram was able to closely observe the inefficiencies of the financial services sector in Egypt and its impact on financial exclusion during his years in the financial services sector.

Omar Ekram, Founder and CEO of Dayra said, "We are thrilled to be part of YC’s W21 batch and to close our Pre-Seed round. This is a key milestone in realising our vision of providing the most accessible financial services solution in MENA, and delivering digital financial services to millions of financially excluded individuals, leveraging on our strategic partnership with EFG Hermes."

Walid Hassouna, CEO of the NBFI Platform at EFG Hermes and Group Head of Debt Capital Markets commented, “We are exceptionally proud to be the first institutional investor partnering with Dayra, in whom we see vast potential due to their disruptive and relevant business model as Egypt works to build financial inclusion and intermediation. Today, EFG Hermes has a number of key facilities on offer to empower companies with great ideas such as Dayra to come in and fill essential gaps in the market."

Mahmoud El Zohairy, CEO EFG EV Fintech added, “We are thrilled about partnering with Dayra and look forward to seeing them through on a path of success. Dayra's unique go-to market approach helps and empowers gig economy participants, while alleviating working capital stress on their employers in a seamless manner, something that the market is in need of right now. Thanks primarily to the world-class team Dayra has put together, including a founder with first-hand knowledge of the financial system as well as a deep knowhow in the tech space, we are excited to see what they have in store for the market.”

The startup plans on doubling its team members to grow the company and build out new product features.

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