What's Happening?
Munify, a neobank founded by Khalid Ashmawy, has raised $3 million in seed funding to improve cross-border banking services for the Egyptian diaspora. The startup, which joined Y Combinator's Summer 2025 batch, aims to provide faster and cheaper remittance options for Egyptians abroad. Munify operates on a dual consumer and business model, offering remittance and banking services for individuals and APIs for businesses to facilitate cross-border payments. The company plans to expand its services beyond Egypt to other Middle Eastern countries, leveraging its unique approach of building its own banking rails.
Why It's Important?
Munify's development addresses a significant pain point for the Egyptian diaspora, who often face high fees and slow processes when sending money home. By offering a more efficient and cost-effective solution, Munify could significantly impact the remittance market, which is crucial for Egypt's economy, receiving nearly $30 billion annually. The startup's approach to directly connecting banking systems across countries could set a precedent for financial technology innovations in emerging markets, potentially influencing how cross-border transactions are handled globally.
What's Next?
Munify plans to expand its operations to other Middle Eastern and adjacent countries, gradually integrating regional banking systems. The startup is already seeing early adoption with thousands of sign-ups and has signed contracts with mid-sized companies and enterprises, projecting over $50 million in monthly cross-border volume. As Munify continues to grow, it may attract further investment and partnerships, potentially reshaping the financial landscape for the Egyptian diaspora and beyond.
