Egyptian entrepreneurs abroad face persistent banking challenges when sending money home. Khalid Ashmawy experienced these pain points firsthand during his studies in Europe and subsequent career at Microsoft and Uber. His solution? Munify, a groundbreaking neobank that just secured $3 million in seed funding to revolutionize cross-border banking for the Egyptian diaspora.
Munify Neobank Addresses Critical Remittance Challenges
Traditional remittance methods often prove costly and slow. For instance, a $400 wire transfer typically costs $40 in fees and takes three business days. Munify’s innovative neobank platform directly addresses these inefficiencies. The startup builds its own banking rails, connecting financial systems across different countries seamlessly.
Founder’s Journey Inspires Neobank Creation
Khalid Ashmawy’s personal experience shaped Munify’s development. After studying computer science in Egypt, he earned two master’s degrees in Germany and Switzerland. His seven-year tenure at Microsoft and Uber provided crucial tech industry exposure. Subsequently, Ashmawy co-founded Huspy, a proptech platform, before launching his neobank venture.
YC-Backed Neobank Stands Out in AI-Dominated Batch
Munify joined Y Combinator’s Summer 2025 batch as a rare non-U.S. entrant without an AI focus. The accelerator and regional investors, including BYLD and DCG, contributed to the $3 million seed round. This backing demonstrates confidence in Munify’s solution for the substantial Egyptian remittance market, which receives nearly $30 billion annually.
Neobank Services for Individuals and Businesses
Munify operates a dual consumer and business model:
- Instant remittances for Egyptians abroad
- US bank accounts for Middle Eastern residents
- Business APIs for cross-border payments
- Currency hedging against local volatility
Market Expansion and Revenue Model
The neobank already serves thousands of users across the U.S., U.K., Europe, and Gulf regions. Munify has secured contracts with mid-sized companies representing over $50 million in monthly cross-border volume. Revenue streams include FX spreads, interchange fees, and payment flows. Future expansion plans target additional Middle Eastern countries.
FAQs About Munify Neobank
What makes Munify different from traditional banks?
Munify builds its own banking infrastructure, enabling faster, cheaper cross-border transfers compared to traditional wire services.
Who can use Munify’s services?
Egyptians abroad can send money home, while Middle Eastern residents can access US banking services using local identification.
How quickly do transfers occur?
Munify offers instant transfers, significantly faster than the 3-day average for traditional wire transfers.
What are the costs involved?
The neobank charges substantially lower fees compared to the 10% typically charged by conventional remittance services.
Is Munify available outside Egypt?
Currently focusing on Egypt, the neobank plans expansion to other Middle Eastern countries in the near future.
How does Munify generate revenue?
Revenue comes from foreign exchange spreads, interchange fees, and payment processing flows.
