Munify Secures $3M to Build a Neobank for Egyptians Abroad

Munify, a Y Combinator-backed fintech startup, has raised $3 million in seed funding to serve the Egyptian diaspora. The company aims to modernise the way Egyptians abroad manage their finances, open bank accounts, and access reliable financial tools.

Earlier this year, the startup participated in Y Combinator’s Summer 2025 batch. The company secured seed funding from the accelerator and additional regional investors, including BYLD and DCG.

Khalid Ashmawy, a former engineer at Microsoft and Uber, founded the startup. His idea came from personal experience. While studying in Germany, he tried to send money back to Egypt. A simple $400 transfer took days and cost him $40 in fees. That moment exposed the inefficiency in global remittances. It also inspired him to build a better system.

Related Post: African Remittance Startup LemFi Acquires UK Card Issuer Pillar

Tackling the remittance problem

Munify allows Egyptians living in the U.S., Europe, and the Gulf to send money home quickly and affordably. The service cuts transaction costs and delivers funds faster than banks or traditional providers.

Instead of relying on existing third-party networks, Munify builds its own banking rails. That gives the company more control over speed, reliability, and fees. It also positions Munify as more than just another remittance app. Ashmawy says his team is creating a financial infrastructure designed for Egyptians abroad. Remittances to Egypt are massive. In 2023, Egyptians abroad sent home nearly $30 billion. Families depend heavily on this money, which supports everything from daily expenses to housing and education. Yet the process often remains slow, costly, and frustrating. Munify is stepping in to change that.

Access to U.S. banking

Munify also tackles another major pain point: access to banking. Egyptians working abroad or freelancing often get paid in U.S. dollars but cannot open international accounts. Munify solves this by offering U.S. bank accounts and debit cards using only a local ID.

Related Post: African Remittance LemFi Secures $53M To Expand Into Europe

This feature is vital for remote workers across the Middle East and North Africa. It gives them stability, protects their income from local currency volatility, and makes it easier to transact globally. Munify is also targeting businesses. Through its API platform, companies can integrate cross-border payment solutions directly. Early partnerships already represent more than $50 million in projected monthly transactions. That B2B angle adds another growth engine beyond consumer remittances.

Backing from Y Combinator and regional investors

The fintech is part of Y Combinator’s Summer 2025 batch, one of the few Middle East–based startups to make the cut. The funding will support expansion, licensing, and scaling across more corridors. Despite launching only weeks ago, Munify has already gained thousands of users through organic growth and word of mouth.

The remittance industry is crowded with players like Western Union, MoneyGram, and regional fintech startups. Yet high fees and poor user experience continue to frustrate millions. Munify’s bet is that faster transfers, lower costs, and digital-first design will win over users. Challenges remain. Regulations differ across borders, compliance is complex, and currency instability in Egypt makes operations risky. Still, the early traction suggests strong demand for Munify’s services.

Related Post: YC-backed Djamo Raises $17M To Fuel Growth in Francophone West Africa

The bigger picture

The Egyptian diaspora spans the U.S., Europe, and the Gulf. Millions of workers and students regularly send money home, making Egypt one of the top remittance markets worldwide.

Munify is positioning itself as the financial hub for this community. With new funding, proven early adoption, and a founder who lived the pain point, the startup has momentum. If it scales successfully, Munify could redefine cross-border banking for Egyptians abroad and set a model for other diaspora-focused fintechs across Africa and the Middle East.

Main Image Courtesy of Munify