One of Egypt’s leading financial technology startups, Khazna, has announced that it has raised a USD38 million Series A round of equity and debt, with the equity investment led by impact investor Quona Capital and the participation of Speedinvest, newly launched fund Nclude and Khawarizmi Ventures, Algebra Ventures, AB Accelerator by Arab Bank, Disruptech, AB Accelerator, and CVentures, among others. Lendable provides the company’s debt financing, and the Arab Bank Egypt serves as the Security Agent for the transaction. When paired with a digital native solution and an innovative business model, Khazna aims to displace cash-driven alternatives across Egypt.
“The unprecedented evolution of Egypt’s nascent fintech industry is a testament to the significant efforts by the Central Bank of Egypt towards financial inclusion and a less-cash society. We are aligned with CBE’s vision and Khazna at its core believes that world-class financial services should be available to all. We are combining cutting-edge technology and relentless user obsession to build the best experience for our users,” said Omar Saleh, Khazna’s co-founder and CEO. “We continue to experience exponential growth in network effects created by our 150k+ active users, our partners, and Egypt’s largest merchants.”
Khazna will be able to increase its efforts to supplant cash-based alternatives in Egypt with the next round.
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Why The Investors Invested
Khazna represents Quona Capital’s second investment in Egypt. “In just two years, Khazna has scaled and monetised quickly and is already a market leader in the push for financial inclusion for the 35 million underbanked in Egypt,” said Monica Brand Engel, co-founder and Managing Partner at Quona. “Empowering consumers and micro-businesses with Khazna’s convenient, user-centric, and the transparent financial super app can enable millions across Egypt to gain greater control over their financial lives. Quona is incredibly excited about Khazna’s roadmap to be the category-leading digital super app for inclusive finance in Egypt.”
“We have been following the Khazna team since its launch in Egypt and have seen the business gain clear traction resulting in a fast scaling product offering,” said Suresh Samuel, Lendable’s Deputy Chief Investment Officer. “As Lendable continues to grow our presence providing scalable debt financing to fintech in Egypt, we are excited to support Khazna’s work in providing increased access to financial services for the underserved in Egypt.”
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A Look At What The Startup Does
In 2020, Khazna debuted with an Earned Wage Access product, which has since expanded into the multi-product offering that is currently offered. Ex-executives from companies including World Remit, Uber, CIB and Jumia are part of Khazna’s leadership team.
Khazna’s Lendable debt facility has been secured by Arab Bank, which has been designated as the Security Agent. As a strategic investor, Arab Bank felt compelled to support Khazna in order to help it flourish, says Ahmed Ismail Hasan, Country Manager for Arab Bank — Egypt.
Half of Egypt’s population has smartphones but no access to official financial services, and Khazna’s super app fills that void. There are now three types of financing available through Khazna: General Purpose Credit, BNPL, and Bill Payment. In response to the Central Bank of Egypt’s recent drive for financial inclusion and a “less-cash” environment, the company’s objective is to digitize cash transactions throughout Egypt.
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As of now, the startup Khazna has raised $47 million.
Nclude Fund Nclude Fund
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer