In a bold move set to reshape the intersection of fintech and religious travel, Kano-based startup UmrahCash has raised $500,000 from Web3 investment leader Adaverse. UmrahCash aims to solve a longstanding issue for Nigerian pilgrims: securing Saudi Riyals for Hajj and Umrah without the hassle.
UmrahCash was founded by William Phelps, a former Investment Manager at Adaverse, where he managed 50 Web3 investments across 11 countries, spanning various sectors and stages.
While based in Kano State, Phelps identified a key market gap. “While much of the attention has been on North-South financial flows, we’ve uncovered a significant opportunity in West-East transactions, particularly within the Islamic market,” he explains.
Financial Hurdles for Nigerian Pilgrims
Nigeria, home to West Africa’s largest Muslim population with around 90 million adherents, sends tens of thousands of pilgrims to Saudi Arabia every year. In 2024, approximately 65,000 Nigerians participated in Hajj, with Lagos State alone contributing nearly 1,900 pilgrims. However, Nigerian pilgrims frequently face major obstacles in obtaining Saudi Riyals.
Some of the challenges include:
- Black market exchanges: many pilgrims rely on unofficial currency dealers, often paying inflated rates, doubling their pilgrimage costs.
- Hawala networks: informal money transfer systems, while widely used, lack transparency and accountability.
- Carrying cash: a large number of pilgrims carry physical cash, posing significant security risks and potential issues with authorities in both their home country and Saudi Arabia.
UmrahCash: A Fintech Solution for Pilgrims
UmrahCash provides a simple, innovative solution: pilgrims can pay in Nigerian Naira before their trip and receive Saudi Riyals upon arrival in Saudi Arabia. This eliminates the need for risky and inefficient currency exchange practices.
As Phelps puts it, “At its core, UmrahCash is a fintech app designed to promote Islamic financial inclusion, offering pilgrims a safe, transparent, and efficient way to access their money.”
User-Friendly for All
The UmrahCash app is designed with ease of use in mind, resembling familiar Nigerian banking applications. It caters to all levels of financial and technological literacy, offering features like:
- Simple currency exchange: seamless and secure transactions between Naira and Saudi Riyals.
- Vetted agent network: a network of trusted agents across Northern Nigeria who provide local language support for users.
- Accessibility: designed for both banked and unbanked pilgrims, ensuring broad financial inclusion.
A Broader Vision: Scaling Across West Africa and Beyond
Looking ahead, UmrahCash plans to extend its services to other West African countries with significant Muslim populations, including Niger, Senegal, and Mali. The company also has its sights on markets like Pakistan and Bangladesh, which face similar financial challenges for pilgrims.
Vincent Li, Managing Founder of Adaverse, commented on the investment: “hosts 14 million migrant workers and 7 million religious visitors annually, with 85% coming from emerging markets. Despite this, there are no international fintech solutions to meet their financial needs. UmrahCash leverages stablecoins and Web3 technology to meet the financial needs of these individuals.”
With its sights set on scaling across the Muslim world, UmrahCash is poised to revolutionize the way pilgrims from developing nations navigate financial transactions during their sacred journeys.
To find out more, visit http://umrahcash.com
