Dubai-based Elevate raises $5 million pre-Series A to provide global USD banking to freelancers in emerging markets

💸 Say hello to Elevate, a Dubai-based fintech offering financial solutions for remote workers and freelancers in emerging markets to enable global USD banking.

And they just raised a $5 million pre-Series A funding round!

• Founded in 2021 by Faris Keenan, Khalid Keenan and Youcef Oudjidane, Elevate has already attracted over 150,000 users from Asia and North Africa since its launch earlier this year.

💰 Investor lowdown: This round was led by Dubai-based investment fund Negma Group.

• Between late 2021 and mid-2022, Elevate (then known as Bloom) secured $6.5 million in seed funding from YC, Visa, Global Founders Capital, and notable angels like Dropbox co-founder Arash Ferdowsi and ex-N26 CEO Nicolas Kopp.

⏪ Background

Targeting East and North Africa, especially Sudan, Elevate initially created a product to hedge against currency devaluation. It offered "high-yield" savings accounts, free FX, and digital banking services based on the US dollar to combat inflation and devaluation.

The aim was to build a pan-African neobank, but the startup faced challenges due to Sudan's political instability and eventual civil war.

Elevate’s co-founders Youcef Oudjidane and Khalid Keenan, recognised they would have to change course.

🔄 The pivot

The founders identified a key user demographic for their USD vision: the growing freelancer and remote work sector.

• Pakistan has over 3m freelancers and growing
• Bangladesh has over 1m freelancers and growing
• The Philippines has over 2m freelancers and growing
• Egypt has the largest growing number of freelancers in the MENA region

Younger workers in emerging markets across the world, skilled in tech and languages, were using platforms like Upwork and Fiverr.

And their main issue wasn't opening local USD accounts, but managing payments from international employers cost-effectively, as local products had high fees that ate into earnings.

• The solution? U.S.-based USD accounts that facilitate ACH payments and provide FDIC security.

⚙️ Break it down

The Elevate platform allows users to effortlessly receive payments from U.S. and international employers, as well as major freelancing platforms like Upwork, Maqsam, PayPal, Deel, and Toptal.

Elevate offers debit cards for online spending and market-leading FX rates for sending money home. Users can transfer funds to local USD accounts for a $10 flat fee. Deposits are held with Bangor Savings Bank in Maine, USA, ensuring FDIC insurance up to $250,000, providing security for residents in Egypt, the Philippines, Pakistan, and Bangladesh.

• The start-up currently generates revenue from net interest income, FX and card interchange.

🔮 Flashforward

Elevate will use the new funds to expand to five markets this year: Indonesia, South Africa, Vietnam, and Turkey. It also plans to launch savings and investment products soon.