Blnk, an Egyptian fintech startup that provides instant consumer credit, has raised $23.7 million in equity and debt funding, as well as $8.3 million in securitized bond issuance, to accelerate financial inclusion in the country’s underserved communities. The funds will be used to support the expansion of Blnk’s AI-powered lending infrastructure as well as the financing of the company’s rapidly expanding customer base.
The $12.5 million in combined pre-seed and seed investment rounds were headed by Abu Dhabi’s Emirates International Investment Company (EIIC) and Egypt’s leading venture capital firm Sawari Ventures, with participation from numerous famous local and international angel investors. A number of major local banks provided the $11.2 million in loan financing. The National Bank of Egypt and Banque du Caire underwrote the $8.3 million securitised bond sale, making Blnk the youngest Egyptian firm to securitize its loan book.
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Speaking about the new funding, Amr Sultan, Co-founder and CEO of Blnk said, “Our mission is to make it easier for more Egyptians to purchase the products and services they desire by offering inclusive and convenient consumer credit at the point of sale. We are delighted to have the backing of a great cohort of investors at an early stage in our journey. With their support, we believe we can drive financial inclusion in Egypt, as well as the wider Middle East and North Africa region”.
Why The Investors Invested
The startup has generated considerable traction since it was founded. Leveraging its vast base of merchant branches across Egypt, Blnk has disbursed more than $20 million in loans to date. Merchants are also boosting their profitability via the transaction commission that Blnk provides.
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Joseph Iskander, Head of Investment at EIIC, said “we are convinced that the Egyptian market and its startup ecosystem present a compelling opportunity for regional and international investors and we are committed to identifying and investing in value accretive businesses. We are pleased to partner with Blnk to drive financial inclusion and economic development in Egypt and we look forward to working with the team to achieve their goals’’.
Hany Al Sonbaty, the Managing Partner at Sawari Ventures, stated: “we are thrilled to have Blnk in our portfolio and backing them to deliver innovative solutions to tackle the urgent challenge of financial inclusion in Egypt. The company has the right combination of a seasoned team and a scalable business model, with a clear path to profitability”.
A Look At What The Startup Does
Blnk, a digital lending platform that was introduced in October 2021 by Amr Sultan and Tarek Elsheikh, enables retailers of all sizes to rapidly underwrite and finance the purchases of their customers at the point of sale. Consumers can get finance to buy a variety of goods or services, including electronics, furniture, and automotive services, and pay over instalments ranging from 6 to 36 months with just a National ID and in as little as 3 minutes.
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Egypt is anticipated to become the second-largest Arab and African economy by the end of 2022, according to the International Monetary Fund. However, due to low consumer credit penetration (just 4% of Egyptians use credit cards), consumers and businesses across the country are unable to fully capitalise on trade opportunities and maximise the country’s full economic potential. Blnk supports continued growth and development in the Egyptian economy by offering inclusive access to financing for consumers across the country.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh