UAE fintech company YAP is in talks with global ME VC funds for raising $20 million

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The fundraising rounds that follow increase the investment’s Series A to $61 million

The UAE-based fintech startup YAP is engaged in discussions with a group of investors from around the world and also from Middle East venture capital (VC) funds – to raise $20 million in funding.

The funds are primarily financing the digital bank’s expansion plans across Africa as well as South Asia.

Marwan Hachem, founder and Group chief executive officer of YAP Marwan Hachem, founder and Group chief executive officer of YAP, has told Arabian Business that the company is currently in the process of contacting investors for a second funding round.

“Our aim is to raise an additional $20 million prior to completing the Series A round before the end of the calendar year.” Hachem stated.

We are talking with a number of international and local VC funding institutions,” the YAP top executive announced.

Read more Fintech Shaype secures $33 Million Series C

Once finalised, the current round will increase the total amount of YAP in Series A to $61 million.

The fintech company has raised $41 million in July of this year, from venture capitalists and Family Offices, led by Saudi Arabia’s Aljazira Capital.

Abu Dawood Group, Astra Group, Audacia Capital and a few other notable Family Offices were some of the investors who participated in YAP in the final cycle of funding.

The investor community has said there could be a concern as YAP is impacting the capital market in the midst of a slowdown in the funding of startups around the world as investors become more prudent.

Hachem However, he stated that the slowdown in funding resulted from investors doubting whether the business model is sustainable.

Furthermore, the funding is tied to approval from regulators and could result in an opportunity for consolidation, he explained.

“However companies with strong models, with great MVPs (minimum viable products) and with a solid approach to go-to-market will continue to attract money,” the YAP founder stated.

The latest initiative of YAP in raising capital meant to fund its aggressive expansion plans for Africa. African market.

We believe there is a genuine demand and an opportunity in Africa and that’s why we’re putting our attention. Ghana is our first entry in the African market and we are expecting to expand into other countries in Africa within the next 12 months,” Hachem told Arabian Business in an interview in the month of September.

The fintech’s digital banking technology is in the process of expanding its operations to Saudi Arabia, a major GCC market.

In line with its aggressive strategies to expand its operations within the region, YAP has partnered with Bank AlJazira in Saudi Arabia which is expected to begin operations in the next month, before going live in the beginning of the first quarter of the next year.

Hachem said that the startup is also developing scalable, new products and services for customers based on a approach that is based on data, and will see consumers be cash-free in 2030.

He also said that cashless transactions were an option in MENA markets.

“Both both the UAE along with Saudi Arabia have a vision of achieving the goal of a non-cash economy by the year 2030. To accomplish this it is necessary for fintech companies like ours to develop opportunities that inspire and empower customers to move towards a cashless lifestyle,” Hachem said.

The YAP founder also said that there were other shifts and trends that are taking place within the financial sector within the region, as well as globally.

“We will be watching them carefully,” Hachem said, without divulging any further developments in the field.

Healso said that because of the growing number of fintech companies, there is also a shift in the regulations as central banks think about ways to incorporate them into areas such as bitcoin, digital banking, and blockchain.

“We are an online banking platform which allows us to upgrade our technology and to adapt to customer requirements.

“However we have decided to collaborate with traditional banks in order to ensure we are in compliance with the regulations in every market, and have their licenses in order to allow our services to function,” Hachem said.

YAP is believed to be the first super financial application in the Middle East, has more than 130,000 people who have signed up to the app since it was launched in 2021. This is an unprecedented number for the region.

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