Egyptian fintech company Axis has successfully launched its digital payments platform, axisPay, in the North African market. The startup obtained a license from the Central Bank of Egypt (CBE) for its open-loop mobile wallet, enabling it to provide a digital banking alternative for small businesses and their employees.
This launch comes after Axis secured an $8.25 million seed investment almost 18 months ago. The funding round was co-led by Tiger Global, Sawari Ventures, and Raba, with participation from other prominent investors such as Firstminute Capital, RaliCap, and founders and executives from notable fintech companies including Venmo, Rho Banking, Cred, Revolut, and Plaid.
Axis had been operating in stealth mode, working closely with regulators to obtain the necessary licensing for its operations. Co-founder and CEO Jacques Marco explained that the company focused on licensing, building relationships with regulators and local banks, and establishing a robust infrastructure, including integrations and certifications.
Jacques Marco previously co-founded Raseedy, Egypt's first independent mobile wallet, before joining unicorn startup MNT-Halan. Axis's co-founders, Ahmed Ragab and Nada Abdelnour, also have extensive fintech backgrounds.
The launch of axisPay addresses the need to digitize payments and money flow for small businesses in Egypt. Currently, a significant number of small businesses operate on a cash basis, facing challenges in online banking services, payroll processing, and access to working capital financing. Axis aims to fill this gap by providing a digital solution for employee payments, expense management, cashback rewards, and earned wage advances.
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Axis differentiates itself by targeting small businesses and unbanked/underbanked employees, focusing on financial inclusion and addressing the specific needs of this market segment. The platform streamlines payments to employees and suppliers through axisPay mobile wallets, offering various financial services such as funds transfer, bill payment, online shopping, and QR code payments.
The fintech company has partnered with Visa for its mobile wallet and virtual card, as well as with Fawry to facilitate cash deposits and withdrawals through Fawry's extensive agent network across the Middle East and North Africa region.
Axis has already conducted a beta launch, onboarding over 100 small businesses from different industries, along with 5,000 employees during its stealth phase. The company plans to expand its customer base to 5,000 small businesses and 80,000 to 100,000 employees by the end of the year. Additionally, Axis intends to introduce a lending product to address Egypt's $15 billion SME financing gap, aligning with the country's national strategy of digitization and economic growth.
Through its innovative approach and collaboration with regulators, Axis aims to become a pivotal player in digitizing small businesses, reducing cash reliance, empowering entrepreneurs, and contributing to the overall growth of the Egyptian economy.
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