PAYDAY Takaful, a promising fintech startup from Tunisia, has closed a $3 million pre-seed funding round. The investment will enable the company to strengthen its digital platform, which provides salary-backed financing and micro-Takaful insurance solutions for employees in North Africa.
The funding round was led by UGFS North Africa and saw participation from notable investors, including TALYS Group and BioProtection SA. This brings PAYDAY’s valuation to approximately $3 million, marking a significant milestone in the company’s early-stage growth.
Revolutionizing Employee Benefits in North Africa
Founded in 2024 by Dr. Mohamed Anouar Gadhoum and Shaher Abbas, PAYDAY offers a unique blend of salary advances and micro-insurance. Through its platform, employees can access their earned wages ahead of payday, while also gaining access to Sharia-compliant, small-scale insurance. The company’s mission is to bridge the financial gap for low- and middle-income earners in the region, who often struggle with short-term liquidity issues between pay cycles.
Dr. Gadhoum, the co-founder and CEO of PAYDAY, expressed his excitement about the funding: “We are committed to improving financial inclusion in Tunisia and beyond. This funding will help us expand our offerings and bring our innovative solutions to more businesses and employees across North Africa.”
Key Achievements and Future Plans
Since its launch, PAYDAY has processed over 10,000 transactions, totaling more than 8.2 million Tunisian dinars (approximately $2.8 million). The startup plans to use the new capital to expand its technology infrastructure, enhance user experience, and build partnerships with more employers and financial institutions. The ultimate goal is to scale the platform across the MENA region, reaching more underserved markets.
PAYDAY’s model has received significant attention, not just for its innovative approach to salary-linked finance but also for its integration of micro-insurance products, which aim to protect employees from unexpected financial setbacks.
Supporting Financial Wellness in the Workplace
The growing popularity of PAYDAY’s platform reflects a shift towards employee-centric financial services. By offering affordable, salary-linked loans and micro-insurance, PAYDAY is providing employees with a lifeline in times of financial distress. Employers benefit as well, as the platform can help boost employee retention and productivity by improving their financial well-being.
The success of PAYDAY comes at a time when North Africa’s fintech ecosystem is gaining momentum, with increasing support from both investors and regulators. As more businesses seek digital solutions to improve employee benefits and financial inclusion, PAYDAY is well-positioned to become a key player in the region’s financial landscape.
The funds raised in this pre-seed round will enable PAYDAY to accelerate its regional expansion and further develop its product offerings. With a proven model and strong backing, the company is on track to play a significant role in improving financial access for employees across North Africa and the broader MENA region.
Key Statistics
Funding amount: US$3 million
Company valuation: US$3 million
Transaction volume to date: 8.2 million Tunisian dinars
Number of transactions: 10,000 +
Our mission is to improve the economic well-being of low- and middle-income earners through solutions that combine insurance with cooperative finance.
