Egyptian fintech Kashat raises $1.75 million Bridge round
- Egypt-based fintech Kashat has raised $1.75 million in a Bridge funding round, led by Launch Africa, with the participation of several regional investors including previous investor, Cairo Angels.
Founded in 2019 by Sumair Farooqui and Karim Nour, Kashat provides nano financial services currently in the form of small loans for the unbanked and under-banked demographics in Egypt, in an attempt to positively impact financial inclusion in the country.
Last April, Kashat received an undisclosed amount of investment from Cairo Angels, claiming to be the largest in the network’s history.
Kashat plans to utilise its newly acquired funds to further support and develop its platform, as well as expand its operations.
Egypt-based fintech and microloan solutions provider Kashat has successfully raised $1.75 million in its latest funding. The Bridge round was led by the Pan-African fund Launch Africa, whose mandate is to back companies that tackle the most meaningful challenges on the continent, and saw the participation of several key regional investors including previous investor, Cairo Angels.
Founded in 2019, Kashat set forth on a mission to positively impact financial inclusion in Egypt, and the Arabic-speaking world at large, by providing accessible, seamless and productive financial services. Through its user-friendly mobile platform, Kashat provides nano financial services currently in the form of small loans for the unbanked and under-banked demographics in Egypt.
It seems like a stellar year for fintech with growth in both volume of deals and VC funding still steadily present as recorded in our latest August 2021 Venture Investment Dashboard. With a 20 per cent YoY growth in the number of transactions closed, Fintech ranked the highest in the volume of transactions in Mena over the month of August, with an eight-deal difference from its successor e-commerce. Driven by a highly active deal flow, and Tabby’s unprecedented $50 million Series B fundraise from global investors including Global Founders Capital, STV, and Mubalada Ventures, fintech startups in Mena raised 41 per cent of all funds in August.
The fintech scene in Egypt and the Mena region in general, is a growing one, with startups contributing to the growth of the digital economy through seamless financial solutions. While Egypt-based fintech startups like PayMob and MoneyFellows work on the larger Egyptian market, Kashat’s operations serve a unique demographic sourced from their mission to promote financial inclusion in Egypt. By providing micro-loans and nano-financial services to Egypt’s unbanked sector, Kashat is tapping into a market that constitutes more than 70 per cent of the population.
The Egypt-based fintech plans to utilise its newly acquired funds to further support and develop its platform, as well as expand its operations. In light of this recent investment, Managing Partner Launch Africa Ventures Zachariah George highlighted “With the growth in customer purchasing power, increased financial inclusion and democratised access to a broader array of goods and services, consumers across Egypt are desperate for a timeous, efficient, digital-friendly and affordable lending solution. Kashat is making broad, bold strides towards this goal and we are proud to be backing them on this journey.”