myZoi, a startup focused on reducing the high costs of remittances for migrant workers, has secured $14 million in funding from SC Ventures and SBI Holdings. With the goal of cutting fees by over 50%, myZoi plans to target the five million low-income migrant workers in the United Arab Emirates (UAE).
Key Takeaway
myZoi has raised
4 million in funding to tackle the high costs of remittances for low-income migrant workers in the UAE. By offering affordable and user-friendly remittance and payroll services, myZoi aims to provide a comprehensive financial solution that meets the needs of both workers and employers. With a focus on trust-building and financial literacy, myZoi hopes to empower migrant workers and contribute to their financial well-being.
Digital Remittance Service
The digital remittance service offered by myZoi aims to reduce transaction costs to less than 3%, in line with the United Nation’s Sustainable Development Goals 2030. By leveraging innovative technology, myZoi aims to make sending money home more affordable and convenient for migrant workers.
Payroll System for Companies
In addition to their remittance service, myZoi has also developed a payroll system specifically designed for companies that employ migrant workers. This system aims to simplify the process of paying employees while reducing costs and ensuring compliance with regulations.
The Roots of myZoi
The idea for myZoi was conceived by Christian Buchholz, who developed the platform as part of SC Ventures. Buchholz, along with co-founder and CEO Syed Muhammed Ali, recognized the financial challenges faced by low-income migrant workers and saw an opportunity to address these issues.
The Challenges Faced by Migrant Workers
Many migrant workers lack access to formal financial services and often rely on cash-based or informal methods of sending money home. myZoi aims to provide migrant workers with a comprehensive financial service that meets their transactional and long-term financial needs.
Building Trust and Financial Literacy
To overcome the distrust that many migrant workers have towards financial services, myZoi has designed an app that is user-friendly and tailored to individuals with low levels of financial literacy. Through extensive research and human-centered design principles, myZoi aims to build trust and empower migrant workers to manage their finances effectively.
A Digital-Only Model
myZoi will be able to offer affordable remittance services by operating on a digital-only model, allowing them to optimize costs and minimize overheads. They are also developing their own infrastructure to further reduce transaction costs in key remittance corridors.
Meeting the Needs of Employers
In addition to catering to the needs of migrant workers, myZoi also aims to provide employers with a frictionless payroll solution. By eliminating the need for extensive paperwork and technical integration, myZoi offers employers a user-friendly platform that meets the unique challenges of employing low-income migrant workers.
