Munify, a cross-border neobank designed for the Egyptian diaspora, has raised $3 million in seed funding from Y Combinator, BYLD, and DCG.
The startup was founded by Khalid Ashmawy, a Microsoft and Uber alum who previously co-founded proptech scaleup Huspy.
Munify tackles the long-standing inefficiencies of remittances, where transfers from the U.S. or Europe to Egypt can cost up to 10% in fees and take several days. Its platform enables instant, lower-cost money transfers, while also giving Egyptians and Middle Eastern workers the ability to open U.S. bank accounts and cards using only local IDs.
Building new banking rails
Unlike traditional remittance providers, Munify is building its own payment rails, directly linking banking systems across markets. This approach reduces reliance on third parties like Western Union or MoneyGram and gives users better exchange rates and speed.
The startup launched publicly in August and has already attracted thousands of signups via word of mouth. On the enterprise side, Munify has signed contracts with mid-sized businesses, representing more than $50M in projected monthly cross-border payment volume.
A $30B remittance opportunity
Egypt is the fifth-largest remittance market globally, with nearly $30B in inflows annually. Ashmawy says Munify’s dual focus on consumers and businesses positions it to capture significant share in the region while setting the stage for expansion into other Middle Eastern and adjacent countries.
Revenue streams include FX spreads, interchange fees, and cross-border payment flows.
“Banking wasn’t built for people like me,” said Ashmawy, CEO of Munify. “It’s costly, slow, and fragmented. We’re building an experience tailored for people from the region who need fast, affordable, and reliable access to financial services.”
With YC’s backing, the startup joins a small but growing group of diaspora-focused fintechs aiming to modernize remittances, following paths set by LemFi in Nigeria and Aspora in India.
