Tiger Global-backed Axis launches digital payments platform for Egyptian SMEs months after its $8.25M seed
Egyptian fintech startup Axis has launched its digital payments platform, axisPay, in the North African market after obtaining a license from the Central Bank of Egypt (CBE). The platform offers a digital banking alternative for small businesses and their employees, aiming to address the cash-based nature of many small businesses in Egypt. The startup received an $8.25 million seed investment in 2021, with participation from investors such as Tiger Global, Sawari Ventures, and Raba.
Axis has spent the past two years obtaining the necessary licenses and building relationships with regulators and local banks. The company's founders, Jacques Marco, Ahmed Ragab, and Nada Abdelnour, all have fintech backgrounds. The focus of the platform is to provide digital payment solutions for small businesses, which account for 80% of Egypt's GDP and employ over 20 million people.
The axisPay platform enables small businesses to streamline payments to employees and suppliers through mobile wallets. It offers features such as salary payments, expense reimbursement, expense management, cashback rewards, and earned wage advances. Employees can access financial services such as fund transfers, bill payments, online shopping, and QR code payments through the platform.
While other fintech players in Egypt focus on consumer financial inclusion, Axis targets the underserved small business segment. The platform aims to reduce the time wasted on cash-based payments and provide a safer and more convenient digital payment alternative for employees. Axis has partnered with Visa for its mobile wallet and virtual card, and with Fawry to facilitate cash-in and cash-out transactions through Fawry's extensive agent network.
Axis has launched its platform in beta to over 100 small businesses and onboarded 5,000 employees. The company projects that by the end of the year, it will have onboarded 5,000 small businesses and 80,000-100,000 employees. Axis plans to introduce a lending product to address the $15 billion SME financing gap in Egypt and aims to align its offerings with the country's national strategy of digitization and economic growth.
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