KSA-based B2B FinTech EdfaPay raises $1.6M to disrupt the customer payment process moving away from traditional POS and NFC technologies
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Saudi-based FinTech EdfaPay has successfully raised $1.6M (SAR 6M) in its latest funding round. The pre-seed investment recorded participation from Nuwa capital, InspireUs VC, Wallan Investment group, and other strategic angel investors; the round will be a core driver of their service launch across the Kingdom.
EdfaPay was established in 2022 by the founders Ghormallah Alghamdi and Nedal Sabbah, and is in the process of launching several financial solutions to the Saudi market targeting small and mid-size companies. EdfaPay products and services will help these companies to easily collect customers’ payments through the use of smartphones without the need to use the legacy traditional point of sale or any other physical payment devices. EdfaPay solutions will enable business owners to collect payments from any-where and from any location where legacy POS solutions cannot be deployed, businesses such as field agents, direct sales, small size stores, shipment agents, food delivery, temporary Bazars, and many others will be able to expand their business faster with no physical boundaries.
As most recently recorded in our Startup Funding- 2022 Emerging Venture Markets Free Report, the FinTech sector was the most prominent industry in 2021 accounting for more than 20% of all deals and 30% of all capital deployed across Emerging Venture Markets. In Africa, all 6 of last year’s MEGA Deals were closed by FinTech startups including Wave Mobile Money, JUMO, Egypt-based Halan, and Flutterwave. The industry was not shy of stardom in Saudi Arabia either; as recorded in our 2021 Saudi Arabia Venture Capital Report sponsored by SVC, funding in the FinTech industry grew by more than 1,200 % YoY, observing a 286% YoY increase in number of transactions to record the highest number of deals for any industry in KSA over 2021. Multiple FinTech themes sturred investor interest in Saudi Arabia over the past year including crediting solutions, payment gateways, SME financing, and open banking with star startups like Rasan Information Technology, Lendo, Hala, and Tamara raising major investments in 2021.
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The state-of-the-art solution provided by EdfaPay works through NFC technology which is a fast-growing market trend all over the world contributing to more than 85% of the POS transactions according to the Saudi payments company. CEO Ghormallah Alghamdi elaborated “ One of the main drivers behind adopting this new technology is the fact that the Saudi market has a great chance of expanding in the financial technology domain. Keep in mind that most of the available solutions currently serving the Saudi market are not built by local expertise and are highly dependent on white-label external vendors. We will be offering this locally-built solution with the support of a talented Saudi team and will be furnished with solid investors who will be bringing along and wide Fintech experience to the table in order to achieve EdfaPay objectives very soon. ”
Referring to the company’s announcement, it was mentioned that, in 2021, there were more than 1M POS devices in the Saudi market processing more than 5 billion transactions presenting more than 473 Billion SAR. “ EdfaPay is working toward facilitating the life of business owners in their objective in expanding their business, distributing their sales channels and ease out the financial transactions performed. Off-load this burden is a key success factor for EdfaPay business.” Said investor Yaser Alghamdi in his announcement.
The Saudi-based FinTech will be able to channel its newly acquired funds into launching its financial services across the Kingdom and supporting its market-entry efforts. In light of this platform-launching investment, partner founder in EdfaPay Nedal Sabbah concluded with high hopes for their market offering “ There is indeed a need for an urgent solution in this digital world to address and resolve most of the legacy POS shortcoming and beyond. We believe EdfaPay will be the perfect solution for that.”
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