Taking the lead in digital payment services , Telda – an app especially built for the millennials and Gen Z to bring fast ways of payment methods. The app has recently raised $5 million.
The recent Pre-seed funding round was led by Sequoia Capital – an American venture capital firm that nurtures the growth sectors with a wide range of products and services. The company focuses on the availability of the market, dynamics of the market, and the competitors while investing. Sequoia Capital is investing in emerging fintech firms in India and the Philippines. Berlin-based Global Founders Capital and Class 5 Global participated in the funding round.
Telda was recently started by Ahmed Sabbah founder of Egyptian bus-hailing service Swvl and Youssef Sholqamy, a former engineer in Uber Technologies Inc.’s infrastructure team. The duo had been keenly looking for an advanced solution for the unbanked young population in Egypt.
Egypt being one of the regions where there is a huge unbanked population. As per a study, the Egyptian culture that still follows the traditional usage of cash makes 67% of the population unbanked until 2020. This low penetration of digital banking makes Egypt one of the most favorable places for fintech firms to invest.
Similarly, the online payment solution ‘Stripe’ entered Dubai to offer the businesses better infrastructure that they require to connect with users globally.
Egypt has been growing in the fintech landscape over the past few years. It has become a hub for emerging entrepreneurial talent and attracting corporations to shape the future of the country with advanced technologies. Egypt completed more than 80 investment deals last year contributing to 24% of deals in the continent.
The company is planning to rapidly expand the business. It plans to accelerate the distribution and production of cards with the latest funds. According to the company, there are already 30,000 signups and half of the users seeking cards. The company consequently plans to build a team by utilizing Sequoia’s brand to recruit professionals. The CEO expressed that they foresee reaching nearly a million cards to the early adopters in the first year.
Telda stands as the first company that Central Bank of Egypt (CBE) issued a license to pursue customers and issue cards. The users can get a Telda account by signing-up online with a national ID and phone number eliminating the fuss of paperwork. Users can request a MasterCard-powered card from the app and use it for all online transactions.