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MoneyHash raises USD 4.5 million in a seed funding round

Tuesday 27 February 2024 14:40 CET | News

Egypt-based fintech MoneyHash has raised USD 4.5 million in a seed funding round co-led by COTU Ventures and Sukna Ventures.

 

MoneyHash has emerged to streamline payment processes for merchants through unified payment APIs. The company has recently secured USD 4.5 million in seed investment to further invest in its technology and expand across the region, following a previous pre-seed round of USD 3.5 million. 

The funding comes in the context of a highly fragmented payment landscape in the Middle East and Africa (MEA) region, with numerous payment providers and methods in each country, evolving regulations, and diverse customer preferences. Challenges such as payment fraud, low checkout conversion rates, and high transaction failure rates add complexity to the situation. 

According to TechCrunch, although the COVID-19 pandemic accelerated the adoption of digital payments in the region, infrastructure development remains inadequate. The same source reveals that Payment failure rates are three times higher in the MEA than the global average, with fraud rates and cart abandonment exceeding those of other regions by over 20%. Merchants often perceive payments as a cost and risk center rather than a strategic enabler. Officials from MoneyHash, emphasised the growth potential in the MEA region, where 10% of all payments are digital. 

As merchants expand their operations, they often integrate with multiple payment processing providers to meet evolving needs. However, integrating different payment stacks presents significant challenges, especially in regions like Africa and the Middle East, where variations in payment methods, currencies, and regulations abound.

 

Egypt-based fintech MoneyHash has raised USD 4.5 million in a seed funding round co-led by COTU Ventures and Sukna Ventures.

 

What does MoneyHash offer? 

MoneyHash offers a unified API to integrate pay-in and pay-out rails, customisable checkout experiences, transaction routing capabilities, and centralised transaction reporting. Company representatives also highlighted the variability in payment failure rates across businesses and emphasised the importance of addressing these issues to improve the overall payment experience. Merchants often outpace their partner payment service providers (PSPs) in growth, leading to a collaboration focus for MoneyHash, particularly with PSPs serving enterprises. 

Following a Beta launch in 2022, MoneyHash introduced its enterprise suite, targeting large enterprises and expanding its network of integrations. The fintech claims significant revenue growth and processing volume increases over the past year. The seed round was co-led by COTU Ventures and Sukna Ventures, with participation from other investors including RZM Investment, Dubai Future District Fund, VentureFriends, Tom Preston-Werner, and strategic investors.


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Keywords: payments orchestration, funding, fintech, investment
Categories: Payments & Commerce
Companies: MoneyHash
Countries: Egypt
This article is part of category

Payments & Commerce

MoneyHash

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