Khazna, an Egyptian fintech startup, raised $16 million in pre-Series B funding, totaling over $63 million. The funds will help expand operations and pursue a digital banking license in Egypt while extending reach into Saudi Arabia. With over 500,000 users, Khazna targets low-income workers with financial services such as loans and payroll integration, aiming to become a full-fledged digital bank.
Khazna, an Egyptian fintech startup, has successfully raised $16 million in pre-Series B funding, increasing its total funding to over $63 million. This latest investment is geared towards supporting Khazna’s expansion strategies, particularly its plans to apply for a digital banking license in Egypt and extend its operations into the Saudi Arabian market.
Founded in 2019, Khazna first obtained funding in 2022 with a $38 million Series A round. Initially catering to 150,000 customers, the startup’s user base has surged to over 500,000, showcasing significant growth in its client reach and service adoption.
The primary focus of Khazna is to support workers who earn significantly less than Egypt’s minimum wage by offering them affordable financial tools. Currently, about 100,000 users receive their salaries through Khazna, which enables the company to incorporate various financial services including loans and insurance into their payroll systems.
Khazna additionally caters to 400,000 users by providing lending services specifically tailored for gig workers and pensioners, thus facilitating their access to credit. The fintech’s co-founder and CEO, Omar Saleh, stated that the company reached profitability by prioritizing its core product offerings, which include loans for payroll and pension recipients.
Omar Saleh remarked, “What we did over the last two and half years was to focus on our core product, which is credit offering to payroll and pension recipients and also unsecured loans to gig workers. This is the most profitable and core product in our journey, and getting it right was very important because it has helped us to hit profitability.”
In addition to its core services, Khazna provides solutions such as bill payment facilitation, buy now, pay later options, medical insurance, and rent-to-own programs. By embedding itself into payroll and lending frameworks, Khazna is strategically positioning itself to evolve into a comprehensive digital bank aimed at serving Egypt’s underserved populations.
The fintech landscape in Egypt has been evolving rapidly, driven by a strong demand for accessible financial services. Many individuals, particularly those with low incomes, have limited access to traditional banking products. Khazna addresses this gap by offering tailored financial solutions aimed specifically at underprivileged workers. This approach not only fills a crucial market need but also positions Khazna as a leading player in the fintech industry in Egypt and potentially in the broader Middle Eastern region. Khazna’s trajectory since its founding reflects a growing recognition of the importance of financial inclusivity, further emphasized by its large user growth and successful funding rounds. The application for a digital banking license represents a significant step towards enhancing the fintech ecosystem in Egypt.
Khazna’s receipt of $16 million in pre-Series B funding highlights its rapid growth and commitment to providing accessible financial services to low-income individuals in Egypt. The startup’s strategic focus on payroll integration and diverse financial products is paving the way for its transformation into a robust digital bank. Its plans for expansion into Saudi Arabia and pursuit of a digital banking license demonstrate its ambition to further support underserved communities in the region. The fintech ecosystem is likely to benefit from Khazna’s innovative approach to credit provision and financial services, making it a key player in the financial inclusion movement.
Original Source: cioafrica.co
