Teen focused FinTech Zywa raises $3m seed round
By Leandra Monteiro
Zywa, a teen focused FinTech start-up re-imagining banking for Gen Z in the Middle East and North Africa, has announced a seed funding round of $3 million. The start-up, which is part of Hub71, Abu Dhabi’s global tech ecosystem, offers a prepaid card for teenagers and an app to manage and save money.
Investors who participated in the round include Goodwater Capital (the largest consumer tech VC globally), Dubai Future District Fund, Rebel Fund, Trampoline VC, Zemu VC, and some of the most prominent European family offices, as well as strategic angel investors.
The funding shortly followed the company’s pre-seed round of $1 million led by Y Combinator in February 2022. The seed round brings Zywa at a latest valuation that exceeds AED 110 million, 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.
Alok Kumar, co-founder and CEO of Zywa said, “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. 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.”
Nuha Hashem, co-founder and CTO of Zywa added, “With Gen Z, we need to hit the nail on the sweet spot between community, gamified learning, and payment access. The Zywa app is already facilitating all the above and this can be seen in the 4.8+ star rating on the App Store, as well as 85%+ of our users being active on a weekly basis, while 90% of our discord users interact with us on a daily basis. 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.”
Backed by Y Combinator and DIFC’s Fintech Hive, Zywa is creating a community of teens in the UAE who can connect and network with each other while building their financial literacy. Zywa has launched several community programs including internships, influencer partnerships, community events and more with key public and private sector entities in the UAE.
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