Egyptian FinTech app Khazna has raised $38 million in equity and debt that will help it expand its reach to Egypt’s unbanked and underbanked population.
The Series A equity funding round was led by US-based Quona Capital, followed by UAE-based Global Ventures’ Nclude, the new $85m FinTech fund financed by Egypt’s three largest banks, the company said.
Other participants included Austria-based Speedinvest, Saudi Arabia-based Khawarizmi Ventures, US-based Accion Venture Lab, AB Accelerator by Arab Bank, as well as Algebra Ventures, Disruptech and CVentures in Egypt.
“We’re very proud of the investments that we have. It’s a mix of global leading FinTech investors, such as Quona Capital and Speedinvest, along with some of the strongest local national and private banks,” Khazna chief executive and co-founder Omar Saleh told The National.
Debt financing was provided by Lendable, which has disbursed more than $225m to FinTech companies in more than 14 countries. Arab Bank Egypt served as the security agent facilitating the transaction.
In the Middle East and North Africa, Egypt stands second in terms of the number of venture capital deals, according to data platform Magnitt. Egyptian start-ups raised a record $491m last year across 147 deals and attracted the highest percentage of foreign investors in the Mena. FinTech led transactions activity was the trend in the region, representing 17 per cent of total deals closed in the country.
Egypt topped the chart in African deals last year and came third in total funding where the local start-ups secured 18 per cent of total capital deployed across the whole continent, according to Magnitt.
Founded in 2019, Khazna seeks to digitise cash transactions and cater to Egyptians who lack access to formal financial services, offering products such as general credit, salary advances, buy now pay later (BNPL) and bill payment to 150,000 active users.
We’d love to see Khazna grow to 5 to 10 million active users here in Egypt
Omar Saleh,
Khazna chief executive
Based on central bank figures, Khazna estimates that at least half of Egypt’s 70 million adults are unbanked with no access to a bank account, or underbanked with access limited to a pre-paid debit card.
“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 transparent financial super app can enable millions across Egypt to gain greater control over their financial lives.”
Khazna is Quona Capital’s second investment in Egypt, following B2B e-commerce start-up Capiter.
The company was founded by Mr Saleh, chief technology officer Ahmed Wagueeh, chief operating officer Omar Salah and chief strategy officer Fatma El Shenawy.
Mr Saleh, a Stanford MBA graduate, had been the Mena head of cross-border digital payments service WorldRemit. Mr Wagueeh was previously with Valeo, Intel and IBM; Mr Salah was part of the team that started Uber in Egypt; and Ms El Shenawy came from Dubai-based investment banking company Arqaam Capital.
“One of the main motivators for everyone working at Khazna is social impact, so it’s basically extending and offering banking and financial services that are usually available only for high-income brackets and provide those through a very simple mobile-based experience to the masses,” Mr Saleh said.
Khazna introduced its first earned wage access product in 2020, allowing partner employers to offer cash advances to their employees as a benefit.
Consumers can also apply for a credit line or buy products on installments without interest or late payment fees, but Khazna does charge a fixed monthly app usage fee.
Four to five new products are in the pipeline that will be launched this year, Mr Saleh said.
Khazna has benefited from the Central Bank of Egypt’s newly introduced regulations to help increase financial inclusion rates and accelerate the country’s digital transformation. Last week the bank launched a national Instant Payment Network and InstaPay mobile application that will allow customers to carry out electronic transfers instantly.
Nclude was approved by the central bank and backed by Banque Misr, National Bank of Egypt and Banque du Caire.
The fund made its first undisclosed investments in four companies, including Khazna; consumer FinTech platform Lucky, which provides instalments, offers, cashback rewards and credit; Agri-FinTech platform Mozare3 for farmers; and electronic payment provider Paymob.
“We were lucky enough to have tapped into a particular part of the market that is tremendous in terms of size…and at the same time, that is a major priority of the government and the country,” Mr Saleh said.
Along with the latest funding round, Khazna has raised a total of about $47m.
Its undisclosed seed funding in March 2020 was led by Algebra Ventures and Accion Venture Lab. In April 2020, Abu Dhabi-based Shorooq Partners invested $50,000, and in August of the same year, Village Capital provided $45,000 in non-equity assistance.
Mr Saleh said Khazna will expand its product offerings based on user priorities and may expand in the long term into markets where there is a large underbanked population, high smartphone usage and regulator support.
“We’d love to see Khazna grow to 5 to 10 million active users here in Egypt. Currently, we’re at 150,000. At the end of the year, we’ll be at a million. So we have a few more years fully focused on Egypt,” he said.
UAE currency: the story behind the money in your pockets
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TV: World Cup Qualifier 2018 matches will be aired on on OSN Sports HD Cricket channel
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Dubai World Cup Carnival card:
6.30pm: Handicap (Turf) | US$175,000 | 2,410 metres
7.05pm: UAE 1000 Guineas Trial Conditions (Dirt) | $100,000 | 1,400m
7.40pm: Handicap (T) | $145,000 | 1,000m
8.15pm: Dubawi Stakes Group 3 (D) | $200,000 | 1,200m
8.50pm: Singspiel Stakes Group 3 (T) | $200,000 | 1,800m
9.25pm: Handicap (T) | $175,000 | 1,400m
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures and results:
Monday, UAE won by three wickets
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
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Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
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If you go
The flights
Return flights from Dubai to Santiago, via Sao Paolo cost from Dh5,295 with Emirates.
The trip
A five-day trip (not including two days of flight travel) was split between Santiago and in Puerto Varas, with more time spent in the later where excursions were organised by TurisTour.
When to go
The summer months, from December to February are best though there is beauty in each season
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Serie A
Juventus v Fiorentina, Saturday, 8pm (UAE)
Match is on BeIN Sports
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Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.
The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.
All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.
No person who has received refuge in Poland will be sent back to a country torn by war.
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