Khazna raises USD 16 million in funding to pursue a digital banking license in Egypt and expand into Saudi Arabia. The investment, led by various reputable funds, enhances its total funding to over USD 63 million. The company’s mission focuses on supporting low-income workers with tailored financial services, promoting financial inclusion in the MENA region.
Khazna, an Egypt-based fintech, has successfully secured USD 16 million in a pre-Series B funding round. The capital will help the company pursue a digital banking license in Egypt and facilitate its entry into the Saudi market. This funding, led by notable investors such as SANAD Fund for MSME and Aljazira Capital, boosts Khazna’s total funding to over USD 63 million.
The fintech addresses the lack of access to traditional banking facilities faced by a significant portion of Egypt’s population. Many individuals rely on cash transactions and informal lending. Khazna’s mission is to provide financial services tailored to the needs of low-income workers, particularly those earning below the minimum wage, thereby promoting financial inclusion across the MENA region.
In addition to its banking ambitions, Khazna offers services such as bill payments, buy-now-pay-later (BNPL), medical insurance, and a rent-to-own system. The company is positioning itself as a comprehensive digital bank, primarily targeting underserved communities in Egypt. It aims to secure a banking license from Egypt’s Central Bank, with a deadline set for mid-2026.
The expansion into Saudi Arabia aligns with the objectives of Saudi Vision 2030, which focuses on advancing the digital economy and attracting fintech entrepreneurs. This national initiative, announced in April 2016, seeks to diversify the economy, enhance social and cultural development, and establish the country as a global investment hub. According to projections, the digital banking sector in Saudi Arabia may reach USD 8.25 billion in net interest income by 2025.
Khazna’s initiative is rooted in addressing the financial inclusion crisis in Egypt, where many lack access to conventional banking services. This is particularly critical given the socioeconomic challenges faced by low-income workers in the region. Furthermore, the fintech landscape is burgeoning in Saudi Arabia due to the kingdom’s focus on diversifying its economy through technological advancements and digital finance. Saudi Vision 2030 aims to leverage innovations in the fintech sector to fulfill these goals and embrace a digital economy.
In summary, Khazna’s recent funding achievement signifies a notable step towards establishing a digital banking infrastructure in Egypt and expanding into Saudi Arabia. By prioritizing financial inclusion and addressing the needs of underserved populations, Khazna is positioned to play a pivotal role in the fintech landscape of MENA. Its alignment with Saudi Vision 2030 further emphasizes its strategic outlook in the growing digital economy.
Original Source: thepaypers.com
