Chari, a Moroccan fintech startup backed by Y Combinator and founded in 2020 by husband-and-wife duo Ismael Belkhayat and Sophia Alj, has closed its $12 million Series A funding round — a milestone it claims is the largest Series A ever raised in Morocco. The round brings Chari’s total funding to $17 million and marks a turning point not only for the company but also for the country’s startup ecosystem.
The financing was led by SPE Capital and Orange Ventures, with participation from an impressive roster of global and regional investors including Verod-Kepple, Global Founders Capital, Plug and Play, Endeavor Catalyst, Pincus Capital, Al Khwarizmi Ventures, UM6P Ventures, Axian Group, Uncovered Fund, AfriMobility, P1 Ventures, Reflect Ventures, Dragon Capital, MyAsia VC, Harambean Prosperity Fund, and H&S Invest Holding.
In addition, several high-profile angel investors joined the round, such as Michael Lahyani (founder of Property Finder) and Karim Beguir (founder of InstaDeep), underlining the broad confidence in Chari’s business model and long-term potential.
From Digital Commerce to Financial Infrastructure
Chari began as a digital commerce and financial services platform aimed at empowering small retailers, grocery stores, and independent merchants across Morocco — a sector often underserved by both modern retail and traditional banks. By digitising supply chains and payment flows, Chari helps local shopkeepers increase efficiency, secure better margins, and remain competitive against large-scale retail chains.
In a major development alongside its funding announcement, Chari became the first VC-backed startup in Morocco to obtain a payment institution licence from Bank Al-Maghrib, the country’s central bank. This landmark approval gives Chari the ability to provide a comprehensive suite of regulated financial services, including:
Point-of-sale acquiring solutions
Issuing payment accounts with Moroccan IBANs
Debit card issuance
Domestic and cross-border money transfers
Utility and bill payment services
Distribution of micro-insurance products
This regulatory recognition positions Chari not only as a fintech innovator but also as a licensed financial institution capable of bridging the gap between traditional commerce and digital banking.
The Road to a Merchant Super App
Armed with fresh capital and a banking licence, Chari is preparing to transform from a digital marketplace into a merchant-focused super app. The company envisions turning every local grocery store into a neighbourhood hub for financial services, effectively reshaping the way everyday Moroccans access payments and financial products.
Co-founder Sophia Alj highlighted the opportunity:
“This is a unique chance to empower traditional grocery stores as local distribution points for financial services. By digitising shopkeepers’ cash flows and expanding their offerings, we can help them increase revenue streams and compete on stronger footing with modern retail.”
CEO and co-founder Ismael Belkhayat added:
“Over the past three years, we have built in-house the entire technology stack necessary to operate under a financial institution licence. With those rails now fully operational and powering Chari’s platform, we are opening them to third parties. This marks the launch of Chari’s Banking-as-a-Service (BaaS) offering, enabling us to serve not just our merchants but also external partners.”
A Signal for Morocco’s Fintech Ecosystem
Chari’s dual announcement — record-breaking funding and a central bank licence — signals growing momentum for Morocco’s fintech landscape. The company’s progress reflects how startups in emerging markets are increasingly leapfrogging traditional banking barriers by combining regulatory credibility with technology-first solutions.
If successful in scaling its “merchant super app” model, Chari could not only transform Morocco’s retail sector but also set a precedent for other fintechs across North and West Africa, where small merchants remain the backbone of local economies.