Munify Raises $3M to Serve Egyptian Diaspora | Fintech News

The Challenge of International Money Transfers

Khalid Ashmawy vividly recalls his initial experience with sending funds back to his family while pursuing studies in Europe.

As a master’s student in Stuttgart, receiving his monthly allowance, he sought a method to remit a portion to his family in Cairo. The process, he remembers, was typically slow and involved substantial costs. For example, a $400 transfer could incur $40 in fees and require three business days for completion.

A Problem Persists Through His Career

Even after gaining experience at prominent companies like Microsoft and Uber in the U.S., and subsequently launching his own venture, this difficulty remained unresolved.

This ongoing frustration throughout his professional life ultimately motivated Ashmawy to establish Munify, a cross-border neobank. Its purpose is to provide Egyptians living abroad with a more efficient and affordable means of sending money home, and to offer residents access to U.S. banking services.

Securing Funding and Recognition

Earlier this year, the startup was accepted into Y Combinator’s Summer 2025 cohort, a notable achievement for a company originating outside the U.S. It also stood out within a class largely focused on generative AI technologies.

Munify secured $3 million in seed funding from Y Combinator, alongside investments from regional firms including BYLD and DCG.

Addressing a Fundamental Need

“Traditional banking systems weren’t designed with individuals like myself in mind,” explained the founder and CEO to TechCrunch. “They are often expensive, time-consuming, and lack seamless integration.”

“This is a problem I’ve personally encountered, and it’s a concern shared by many who desire a swift and effective way to send money back home.”

Ashmawy’s Background and Inspiration

Ashmawy’s upbringing in Egypt and his early passion for computer science laid the foundation for his career.

He pursued and obtained two master’s degrees in Germany and Switzerland through a scholarship, fostering a strong affinity for software development.

Experience at Tech Giants

He subsequently spent seven years as an engineer and team leader at both Microsoft and Uber.

These roles broadened his perspective, exposing him to the potential of disruptive technologies and the startup ecosystem.

From Proptech to Fintech

In 2019, Ashmawy transitioned from Uber to co-found Huspy, a proptech platform specializing in mortgages within the Middle East, serving as its Chief Technology Officer until 2022.

Stepping down from Huspy provided him with an opportunity for introspection regarding his own experiences as an immigrant.

The issue of remittances once again came to the forefront, coinciding with the emergence of platforms like Nigeria’s LemFi and India’s Aspora, which were successfully facilitating money transfers for migrants from those nations.

The Remittance Market and Munify’s Approach

Egypt represents a significant global remittance market, receiving approximately $30 billion in inflows annually.

While traditional methods like bank wires, Western Union, and MoneyGram currently dominate, Munify aims to become the preferred choice among a growing number of digital banks promising faster and cheaper transfers.

Targeting the Diaspora

According to Ashmawy, Munify primarily serves Egyptians residing abroad – particularly in the U.S., U.K., Europe, and the Gulf region – offering instant money transfers at competitive rates.

Munify also empowers businesses, remote workers, and freelancers in the Middle East to open U.S. bank accounts and obtain cards using only local identification.

This allows them to receive and spend funds, and to protect themselves against fluctuations in local currency values.

Building a Unique Infrastructure

“Our key differentiator lies in our development of proprietary infrastructure, directly connecting banking systems across various countries,” the CEO explained to TechCrunch.

“The platform, launched just two weeks ago, is already experiencing positive initial traction through word-of-mouth, with thousands of users signing up.”

“We’ve specifically designed this experience to cater to the needs of individuals from the region,” Ashmawy added.

Business Growth and Future Expansion

Munify has already secured contracts with mid-sized companies and enterprises, projecting a monthly cross-border transaction volume exceeding $50 million.

The startup operates on a dual model, providing both consumer remittance and banking services, as well as APIs for businesses to facilitate cross-border payments.

Its future plans include expanding beyond Egypt to other Middle Eastern countries and neighboring regions, gradually establishing a network of regional banking connections.

Revenue Streams

Munify generates revenue through FX spreads, interchange fees, and payment processing flows.

Why Y Combinator Invested

Recent Y Combinator cohorts have largely favored AI and developer tools from the United States. What led to the selection of this Egyptian fintech startup?

Ashmawy believes the critical nature of the problem they are addressing was a key factor.

“If you’re tackling a significant and pressing issue, that’s what truly matters, regardless of the current technological trend, whether it’s AI or something else,” he stated.

A History of Supporting Financial Infrastructure

Y Combinator has a history of investing in startups focused on solving complex financial infrastructure challenges, such as Stripe and Coinbase.

Remittances represent a long-standing pain point in global finance, and the accelerator consistently prioritizes startups from emerging markets addressing this issue (like LemFi and Aspora) even before its recent focus on AI.

A Strong Founder and a Personal Connection

Munify presented an opportunity to support a founder with experience at two major U.S. tech companies, a proven track record in building a leading proptech firm in the MENA region, and a personal understanding of the challenges faced by the target demographic.