Sympl, an Egyptian fintech, raises $6 million for its save now, pay later service

Five months after a soft launch, Sympl has raised $6 million in seed money, the Egyptian fintech company announced today.

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Main Highlights:

While buying now, pay later (BNPL) options have existed for an extended period; they gained popularity as the epidemic prompted more people to shop online and save money. Though BNPL has gained traction in most of the world, it has yet to gain traction in Africa. However, in nations such as South Africa and Egypt, similar services are experiencing a new rise in demand.

Sympl, a five-month-old Egyptian fintech, revealed today that it had raised $6 million in seed capital following a soft launch in October. Beco Capital led the seed round for the five-month-old startup, including participation from A15 and Global Ventures.

Sympl was founded in August of this year by Mohamed El-Feky, Yasmine Henna, and Karim Tawfik. Founder and CEO El-Feky explained that they joined together to form Sympl because they all share the view that there is a massive buy opportunity now, pay later in Egypt, given the country’s large population. It is a consumer-driven market where consumers have extensive online and offline access to consumer items and services.

However, Sympl’s products have a slight twist, as the founders sought to localize the company’s product for the Egyptian market. According to the CEO, Sympl operates on a save your money, pay later strategy instead of the more traditional buy now, pay later one.

Sympl claims to be targeting the country’s over 50 million debit and credit cardholders. And, as with any BNPL service, the corporation wishes to reward a percentage of this demographic at the point of sale, whether in-store or online.

Sympl enables businesses to sell directly to consumers on short-term, completely interest-free (zero-interest) payment plans without the need for pre-registration. A common BNPL approach entails dividing an acquisition into many equal installments. The initial payment, which is often 25% of the total transaction, is made at checkout, and the remainder is made in three installments.

Sympl uses a novel strategy, which the company claims will help its clients save more money when shopping.

Sympl team

Sympl’s Idea to being Customer-Centric

According to the corporation, the platform represents an upgrade of the checkout experience for customers. Instead of boosting purchases, it provides customers with more options at the checkout. It encourages them to save, manages their financial flow more effectively, and better match their income and expenditure, all without jeopardizing their lifestyle.

When consumers purchase at one of Sympl’s merchants, the business recognizes the monies in their bank accounts and charges them an upfront fixed fee of 100 Egyptian pounds. The fee covers future repayment collection and is constant regardless of the purchase amount.

Then Sympl offers customers the option of paying later with no interest. The remaining installments can be paid in three to five installments. According to the company, the programs are tailored to the various job statuses of consumers — gig workers, freelancers, self-employed, and traditional employees.

The CEO stated that this is the cost savings to the consumer. Therefore, rather than spending your entire budget in one transaction, you may walk out of the store with the product and your money in your pocket while paying it off in three to five equal payments. It could be monthly, bi-weekly, or weekly.

Sympl’s October launch was calculated. For one week, it collaborated exclusively with Tradeline, Egypt’s largest reseller of the iPhone 13, so users could only purchase the phone online or offline through Sympl.

CCO Henna stated that they were fortunate during their launch because she and Mohamed had many partners at valU. (the consumer fintech where both worked before Sympl). And as a result of their success at the time, they approached them as merchants seeking to collaborate with them at Sympl.

According to the company, Sympl has onboarded up to 240 merchants selling products in electronics, fashion, appliances, furniture, travel, healthcare, jewelry, and education. It intends to reach 1,000 locations by the middle of next year. Henna further noted that Sympl’s transaction volume increased by 25% week over week.

Sympl will utilize the funding to grow its merchant network, invest in technical updates and innovations, hire additional personnel, and expand its reach across Egypt to all 27 governorates (it is now in two). El-Feky stated that when the company raises its next round of funding, it will consider expanding beyond Egypt.

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