Zywa, a teen-focused fintech startup aiming to re-imagine banking for Gen Z in the Middle East and North Africa, has secured $3 million in a seed funding round in order to focus on growth in the UAE and expansion to Egypt and Saudi Arabia.
Founded in 2021 by entrepreneurs Alok Kumar and Nuha Hashem, who were born and raised in Saudi Arabia, Zywa is bringing a unique solution to the region by offering a gamified community-based banking app and payment card to Gen Z between the ages of 11 and 25 years old.
In just 4 months of the pre-seed round, Zywa received 100,000+ signups. Gamification,
community events, rewards and referrals contributed to the company’s rapid growth, in addition to integrating with 1,000+ brands tailored exclusively for Gen Z.
According to the startup, “Investors who participated in the round include Goodwater Capital (the largest consumer tech VC globally), Dubai Future District Fund (venture capital fund of funds of Dubai, anchored by Dubai International Financial Centre and Dubai Future Foundation), Rebel Fund, Trampoline Venture Partners, Zemu VC, and some of the most prominent European family offices, as well as strategic angel investors.”
Alok Kumar Co-founder & CEO Zywa
“Gen Zs in the UAE spend about AED 5B+ every year and still rely on cash or their parents’ cards despite having options like supplementary cards issued by their parents’ banks. While these options give access to digital payments, they are not fundamentally designed for Gen Z, and this is where we add value. We are Gen Z building for Gen Z and aim to grow our product as they grow, to be the only financial services platform they will ever need. We are extremely proud to have global VCs such as Goodwater Capital, who is one among the early backers of Monzo, joining the round and investing for the first time in the region. The seed fund will help us focus on product, growth, and strategic partnerships to accelerate our efforts in the UAE and Egypt markets while prepping us to launch in Saudi Arabia by early 2023.”
The funding shortly followed the company’s pre-seed round of $1 million raised in February 2022. The seed round also brings the Y Combinator-backed startup to a valuation that exceeds $29 million (110 million AED), despite the current economic downturn.
Zywa recently joined Hub71, Abu Dhabi’s global tech ecosystem, gaining access to Abu Dhabi’s capital ecosystem, a global network of partners, and a vibrant community of highly skilled talent.
Ms. Nuha Hashem, co-founder, and CTO of Zywa said that, “The seed round will help us create more product initiatives to give the best possible experience to our Gen Z users while building their financial literacy. We want them to experience banking in a cool way that sets a high standard for them in the future.”
“This funding will also help us tailor the product to a new audience in my home country (Egypt) and the country where I grew up (Saudi Arabia). We are proud to have a product that is localized to the MENA region and that Gen Z can resonate with,” Ms. Hashem added.
