Egyptian Islamic fintech startup Agel recently secured a seven-figure pre-Seed funding round. The investment was led by Plus Venture Capital (+VC) and Seedstars International Ventures, with participation from Flat6labs, SEEDRA Ventures, Banque Misr Acceleration Program, and angel investors. The exact amount of the investment remains undisclosed.
The primary intent behind this investment is to support Agel’s growth and development as it aims to become a licensed non-banking financial institution. Additionally, the funds will be used to refine Agel’s product offerings and facilitate its expansion throughout Egypt. Furthermore, Agel is preparing to launch a merchant co-branded banking card service in collaboration with Abu Dhabi Islamic Bank (ADIB) as part of its future plans.
Why The Investors Invested
Several key reasons led the investors to participate in Agel’s funding round. Firstly, Agel addresses the demand for Sharia-compliant financial services in Egypt. With its focus on serving small and medium-sized enterprises (SMEs), Agel provides alternative financing options that align with Islamic principles. This meets the specific needs of businesses in Egypt’s Micro, Small, and Medium Enterprises (MSMEs) sector. The investors recognized the potential of Agel’s mission to transform traditional financial services and offer digital, cashless, and Sharia-compliant financing products to the market.
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Secondly, Agel’s founders, Abdelrahman Saeed (CEO) and Ahmed El Sherbiny (COO), possess a deep understanding of the Egyptian market and the specific challenges faced by MSMEs. By reshaping traditional financial services and tailoring them to the cultural and financial requirements of the target market, Agel presents a unique value proposition. This approach resonated with the investors, who recognized the potential for Agel to provide much-needed financing options and contribute to financial inclusion in Egypt.
Lastly, Agel’s strategy of empowering merchants by providing them with on-credit financing and facilitating their transactions through a digital platform stood out to the investors. The company’s initial success in establishing a fashion-focused network within Egypt’s textiles industry demonstrated its ability to tap into lucrative sectors. This track record, combined with Agel’s plans to diversify its offerings and expand into other industries, presented a compelling investment opportunity for the investors.
A Look at Agel
Agel, Egypt’s first and only Islamic FinTech, was founded in October 2021 by Abdelrahman Saeed and Ahmed El Sherbiny. The startup focuses on providing Sharia-compliant lending services to MSMEs in Egypt. Agel’s flagship offering is Murabaha, a cost-plus financing model that adheres to Islamic principles. By offering customized, digital, and cashless financing products, Agel aims to revolutionize traditional financial services and cater to the specific needs of MSMEs.
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Agel’s primary market is Egypt, where it aims to address the financing constraints faced by MSMEs. The company’s strategy revolves around empowering merchants by providing them with the necessary financing to acquire goods and supplies on credit. Agel also benefits suppliers by allowing them to sell on credit and manage their commercial transactions seamlessly through its application.
In its first year of operations, Agel focused on the textiles industry, establishing the largest network of fashion-focused suppliers in Egypt. The company plans to expand its offerings to other industries, contributing to an annual market size of $85 billion. Agel’s recent funding round will support its growth into a licensed non-banking financial institution, advanced product development, expansion to major cities in Egypt, and the launch of a merchant co-branded banking card service in partnership with ADIB. The company’s growth aligns with Egypt’s vision for financial inclusion and supports the United Nations’ Sustainable Development Goals.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard