UAE’s digital wallet Hubpay raises $20 million in series A round

UAE-based digital wallet provider Hubpay has raised $20 million in a Series A round. Hubpay aims to facilitate the process of money transfers on a domestic and international level.

The funding will be used to hire new employees and for the company’s planned international expansion in 2022, focusing on Asia and Africa, Magnitt reported.

The funding was led by US-based telecommunications firm Signal Peaking. Investors including Olive Tree Capital, BECO capital, Stormbreaker, and Emkan Capital also contributed to the round.

“Hubpay represents Signal Peak’s first investment in the Middle East.  We recognize the enormous potential the market has and have great confidence in Hubpay’s team to capitalize on this unique opportunity,” commented Brandon Tidwell, managing partner of Signal Peak Ventures.

The Falcon Network, a UAE angel investment group, also participated in Hubpay’s Seed round. Falcon Network has backed a number of high-impact businesses in the region. Hubpay is in the advanced stages of the licensing process to receive a Money Services Licence in the United Arab Emirates market, enabling low-cost digital remittances and international bill payment.

The UAE is the third-largest market for remittances globally, with $44 billion of payments made last year. The regional market is vast, with Gulf countries’ remittances exceeding those of the USA. The majority of these flows go to the fastest growing mobile money markets globally: India, Pakistan, Philippines, Bangladesh, and Indonesia. The remittance channels provide a direct route to the $3 trillion digital wallet market across Asia.

Founded in 2019, Hubpay is an e-wallet that aims to facilitate the process of money transfers on a domestic and international level. It will address both the remittance and mobile money markets by launching a digital wallet for both senders and receivers.

As part of Hubpay’s international strategy, Hubpay has been welcomed onto the Visa Fast Track program, enabling Hubpay to leverage Visa’s payment infrastructure and further scale the business.