Zywa, a teen-focused fintech startup in the Middle East and North Africa, has announced a seed funding round of $3m. The startup, 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, Dubai Future District Fund, Rebel Fund, Trampoline VC, Zemu VC, and some of the European family offices, as well as strategic angel investors.
The funding shortly followed the company’s pre-seed round of $1m led by Y Combinator in February 2022. The seed round brings Zywa at a latest valuation that exceeds Dhs110m, 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.
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.
We are incredibly proud of our startup, @zywa_club, a teen-focused fintech startup re-imagining banking for Gen Z in the Middle East and North Africa, which has announced a seed funding round of US $3.5 million! pic.twitter.com/fI9vuWebkZ
— Hub71 (@hub71ad) August 23, 2022
Alok Kumar, co-founder and CEO of Zywa said, “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, “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 per cent 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.”
Samanth Ku, COO of Square Financial Services and one of the strategic angel investors who joined the round, also added, “We are excited to back Zywa as we believe financial education needs to be revolutionized for teens in this changing economy. Giving exposure to kids early on about saving and personal finance fundamentals and done in an engaging way sets up the next generation for success.”
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 programmes including internships, influencer partnerships, community events and more with key public and private sector entities in the UAE.