Munify, a cross-border neobank founded by Khalid Ashmawy, has joined Y Combinator’s summer 2025 batch and raised US$3 million in seed funding from the accelerator and regional investors BYLD and DCG.

The platform helps Egyptians abroad send money home faster and cheaper, while also giving users in Egypt and the Middle East access to US banking services with local IDs.

Ashmawy, who previously worked at Microsoft, Uber, and co-founded proptech platform Huspy, launched Munify after encountering high costs and delays in traditional remittance services.

Egypt receives nearly US$30 billion in remittances annually, with most transfers still handled by legacy providers.

Munify says it has signed contracts with mid-sized companies and enterprises and operates a dual consumer and business model, earning revenue from FX spreads, interchange, and payment flows.

The startup plans to expand its banking and remittance services to other Middle Eastern markets.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Egypt’s remittance market offers substantial cost-reduction opportunities

Egypt’s position as one of the world’s largest remittance markets creates significant potential for digital disruption.

The country receives nearly $30 billion in annual remittances, making it the sixth-largest recipient globally in 2017 at $20 billion1.

Yet traditional transfer costs remain prohibitively high, with the global average of 7.1% for sending $200 being more than double the UN Sustainable Development Goal target of 3%1.

Ashmawy’s personal experience illustrates this gap: a $40 fee on a $400 transfer represents a 10% cost, significantly above global averages.

This cost burden is particularly meaningful given that approximately 29.7% of Egyptians still lack access to formal banking services2, suggesting many recipients rely heavily on these expensive remittance channels.

The historical context shows remittances have long been crucial for Egypt’s economy, accounting for 5% of GDP as far back as 2007 when they totaled $5.9 billion3.

2️⃣ Y Combinator’s backing validates the diaspora neobank opportunity