Khalid Ashmawy, a former Microsoft and Uber engineer, has raised $3 million in seed funding for Munify, a neobank aimed at simplifying cross-border transactions for Egyptians living abroad. The startup, which recently graduated from Y Combinator’s Summer 2025 batch, seeks to address the long-standing challenges of international money transfers.
Ashmawy’s personal experiences as an Egyptian expatriate fueled the creation of Munify. He recalls the frustration of sending money home while studying in Europe, facing high fees and lengthy processing times. These issues persisted throughout his career, even after working at tech giants and founding a startup.
Munify offers a dual-pronged approach: providing Egyptians abroad with a faster, more cost-effective way to send money home, and giving Egyptian residents access to U.S. banking services. The platform also caters to businesses, remote workers, and freelancers in the Middle East, allowing them to open U.S. bank accounts using only local identification.
“We’re building our own rails and directly connecting banking systems across different countries,” Ashmawy explained. This approach sets Munify apart from traditional remittance services and banks.
Egypt, with annual remittance inflows of nearly $30 billion, represents a significant market opportunity for Munify. The startup faces competition from established players like Western Union and MoneyGram but aims to differentiate itself through lower costs and faster transfers.
Since its recent launch, Munify has reported thousands of sign-ups and has secured contracts with mid-sized companies and enterprises. These agreements represent a projected monthly cross-border volume exceeding $50 million.
The startup’s business model combines consumer and business services, offering remittance and banking for individuals alongside APIs for corporate cross-border payments. Munify generates revenue through foreign exchange spreads, interchange fees, and payment flows.
Looking ahead, Ashmawy plans to expand Munify’s services beyond Egypt to other Middle Eastern countries, gradually building a network of regional banking connections.
The $3 million seed round included participation from Y Combinator and regional investors such as BYLD and DCG. Despite the current focus on AI startups, Y Combinator’s decision to back Munify underscores the persistent need for solutions to global financial infrastructure challenges.
