Tunisian fintech PAYDAY has raised $3 million in its first pre-seed round to transform how workers access finance digitally. The funding, led by UGFS (United Gulf Financial Services) North Africa with TALYS Group and BioProtection SA, will help the startup provide digital loans and micro-insurance to low- and mid-income employees across Tunisia and the region.
The round represents a major milestone towards the company’s plans for expansion throughout Tunisia and the greater North Africa.
PAYDAY was launched in 2024 by Mohamed Anouar Gadhoum and Shaher Abbas. It brings together banks, insurers, and employers to provide financial products for medium- and lower-income wage earners. Its salary-backed loans and micro-Takaful insurance package strengthen staff financially while boosting productivity.
Micro-Takaful is a type of Islamic microinsurance that provides small, affordable protection for low- and medium-income workers. It works on the principle of cooperation, where participants contribute to a shared fund to cover losses or emergencies for anyone in the group.
Unlike conventional insurance, it avoids interest and gambling, making it Sharia-compliant. In PAYDAY’s case, micro-Takaful gives workers a safety net for unexpected events while also giving access to small, interest-free salary-backed loans.
Since its initial launch, PAYDAY has enabled over 10,000 transactions worth over 8.2 million Tunisian dinars. This portrays an active early adoption and verification of its business model in real-world deployment.
The firm aims to be a leading regional centre for inclusive insurance and financial health that offers business and workers affordable digital access to a variety of financial services.
Deploying investment for scaling and expansion
Pre-seed funding will enable the growth of services and scaling of operations by PAYDAY. Investment by TALYS Group, BioProtection SA, and UGFS North Africa guarantees not only funding but also finance expertise, technology expertise, and industry connections.
The company will expand its platform by incorporating additional banks, microfinancing institutions, and insurance providers. This will enable it to insure employees directly in addition to delivering a business-minded insurance and financial aggregator service.
Both employers and workers will benefit from higher productivity and better insurance wellness programs. It will also mean affordable credit, insurance, and other digital insurance products for workers.
With this holistic model, PAYDAY is able to assess workers and employers concurrently. Staff are able to address money crises effectively, while employers have seamless payroll processing. The digital platform also enables companies to achieve corporate social responsibility by enhancing the welfare of their employees.
Aiming for regional development
PAYDAY is turning into a regional standard for financially inclusive services. The startup aims to grow beyond Tunisia by offering digital solutions for entrepreneurs and workers throughout North Africa.
The initiative is to develop a financially inclusive ecosystem covering the formal workers and the informal workers who are mostly denied access to banks and traditional insurance services.
The pre-seed funding of $3 million will boost the product-building process, increase the number of users, and improve functional infrastructure. Through the combination of several financial service providers, the platform provides a single-point solution for companies looking for payroll-backed financial services and insurance products.
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The programme’s model creates access to finance by giving low- and medium-income households access to microcredit and insurance without the need to traverse a multitude of institutions or cumbersome arrangements.
This simplified access will improve access to financial education, reduce risk exposure to debt, and create a cushion for unexpected expenses.
As a result, PAYDAY is establishing a digital ecosystem that enables businesses, banks, and insurers to work together more effectively. More than 10,000 transactions completed so far portray an evident demand for such services. The second stage will be to grow the operations, scale the platform and take it to new users and geographies.
