Egypt: Acasia Ventures backs remittance platform
Egyptian venture capital firm Acasia Ventures led the USD seven-figure pre-seed investment round in Cairo-based, remittance-focused fintech startup Balad. The round was joined by Launch Africa, Future Africa, V&R, Magic Fund, First Circle, Sunny Side, and several family offices.
Founded in 2022, Balad is a remittance-driven financial service provider catering for migrants and their families. The startup offers reduced transfer fees and instant delivery of inward remittances via Balad prepaid cards.
One in seven people globally is involved in sending or receiving remittances, with $700 billion circulating worldwide each year. Egypt ranks as the fifth-largest country receiving remittances, and a significant portion of its underbanked population relies on these transfers as their primary source of income. Current transfer fees range between 4-11%, and in some cases, transfers can take over a week to reach recipients. Additionally, migrants in host countries and families in home countries are largely underbanked and often lack access to basic financial services, such as credit, savings and insurance.
The investment will be used to launch Balad’s remittance platform, develop the necessary technology for the platform, hire new team members, obtain required licences, and complete integrations with its banking partner.