The UAE-based FinTech and digital wallet provider Hubpay raises $20M Series A to champion financial inclusion and launch its cross-border digital wallet in the region
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The UAE-based and MENA-servicing digital money service provider Hubpay has successfully raised $20M in its latest funding round. The Series A round was led by US-based Signal Peaking, marking its first investment in the Arabian Gulf, and recorded participation by Olive Tree Capital and BECO Capital as well as early-stage investors Stormbreaker, Emkan Capital, and Aditum.
Founded in September 2019 by Kevin Kilty, Hubpay is an e-wallet that enables customers to send money both domestically and internationally. With this exceptional fundraise, the UAE-based FinTech has also announced the launch of its cross-border digital wallet with no-cost remittances to drive financial inclusion across the region. This move not only brings the region closer to a cashless future, opening the possibility of inclusive financial servicing but also unifies the region under a canny digital product, unlocking the true potential of decentralized financial networks.
Over 2021, as recorded in our State of Startup Funding- 2022 Emerging Venture Markets Free Report, the FinTech sector across Emerging Venture Markets has raised the lion’s share of investments, garnering more than 30% of total funds across geographies. In MENA, the FinTech sector observed more than 180% YoY growth in funding driven by major rounds raised by startups disrupting traditional banking, introducing new financial concepts, setting up for the future of cryptocurrency, or creating alternative solutions to serve the large unbanked portion of the community. Financial inclusion has been a key mandate for many FinTech startups across Emerging Venture Markets, in Pakistan it was startups like Oraan giving people crowd-funded access to capital, or Udhaar Book and DigiKhata allowing SME’s to structure and build their digital ledgers that starting pushing for more access and clarity over finances. In MENA, financial inclusion has been a core value for FinTech startups across verticals. For example startups like Sarwa and Thndr are promoting easy and equal access to investment and stock opportunities for everyone across the region, while startups like Zywa and Verity are designing multifunctional platforms to raise financial literacy and equip the future generation for financial efficacy.
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Hubpay's financial inclusion mission is guided by the company's wider focus on the United Nation's Sustainable Development Goals. Financial Inclusion is positioned predominantly as an enabler of other SDGs, and the UN has mandated for global remittances to cost under 3%; Hubpay has already dropped this cost to zero. Furthermore, remittance flows have a disproportionate impact on improving the economic lives of women and members of female-headed households. As Hubpay expands its product range and market presence in 2022, the company will offer financial products to remittance receivers that directly address customer needs including both financing and insurance solutions.
Hubpay, the first startup licensed in the United Arab Emirates for digital money services, will use the fresh capital to hire more employees and continue its international expansion, particularly in Asia and Africa in 2022. The company has offices in Dubai, Abu Dhabi, Karachi and London. The company has “multiple products in the pipeline,” the company announcement says. “The fintech market across MENAP is at a turning point,” said founder and CEO Kevin Kilty in Hubpay announcement. “A wave of new digital regulatory regimes has been launched, enabling businesses like Hubpay to offer fully digital solutions to underbanked users. Key ecosystem building blocks, such as digital KYC and the ubiquity of smartphones, have created a landscape to drive the largest financial inclusion trends that we’ve seen since Alipay was launched in China,” Kilty concluded.
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