WafR leverages its startup proprietary technology to turn small-time merchants into financial service providers, allowing them to facilitate mobile phone top-ups, money transfers and cash-in/cash-out transactions.
Ismail Bargach, CEO of WafR. Image Credits: WafR
Italian investment group that caters to African startups, Kili Ventures, has invested a $1.5 million seed funding in Moroccan fintech company, WafR. This comes as Kili Ventures, a syndicate of 18 investors across these continents, kicks off plans to establish a footing in the African investment landscape, planning to seal six to ten new deals in 2025.
Ismail Bargach and Reda Salla co-founded the startup in 2021 to cater to Morocco’s heavily cash-dependent economy. According to the IMF Financial Access Survey of 2023 and the World Bank Global Findex of 2021, 89% of transactions are still conducted using physical currency, only 33% of adults hold a bank account, and bank card usage remains below 9% of transactions. WafR leverages its startup proprietary technology to turn small-time merchants into financial service providers, allowing them to facilitate mobile phone top-ups, money transfers and cash-in/cash-out transactions.
So far, the startup has onboarded 8500 active monthly merchants, a number it aims to expand to a network of 100,000 retailers. At present, it experiences a 29% monthly growth, a trajectory typical of Kenya’s M-Pesa, which now processes mobile payments equivalent to 56.8% of Kenya’s GDP according to the Central Bank of Kenya 2023.With Morocco’s financial transactions industry worth $16.5 billion, WafR has a massive market opportunity in front of it. This includes $1.5 billion from mobile phone top-ups (ANRT 2023), $5 billion in domestic remittances, and $10 billion in international remittances (World Bank 2023).
Mr. Bargach, who previously served in ride-hailing company Heetch as country manager, and had a stint with Seedstars accelerator, said: “The world is shifting from cash and traditional banking to mobile. We’ve seen this with Revolut and N26 in Europe, and M-Pesa and Wave in Africa. Our vision is to become the primary financial account for sending money and making payments.”
Davide Rovera, managing partner at Kili Ventures, emphasized the strategic nature of the investment, stating, “WafR exemplifies the type of innovation we seek to support in Africa — technology-driven solutions that democratize access to essential financial services. The team has a deep understanding of the local market, and we are confident in their ability to drive meaningful change.”
As Morocco’s digital financial ecosystem evolves, WafR’s backers are betting on its ability to accelerate financial inclusion and provide an alternative to traditional banking. The syndicate has indicated that its next investment round is scheduled for February 2025, with opportunities for new investors to participate
