Local fintech startup Khazna has raised USD 38 mn in equity and debt in a series A funding round, according to a press release (pdf). The round was led by US-based Quona Capital and includes previously announced funding from Nclude — the new USD 85 mn fintech fund launched by state-owned banks Banque Misr, the National Bank of Egypt, and Banque du Caire and managed by the UAE’s Global Ventures.

Early backers doubled down on the company, one of the hottest fintech players in the market, with our friends at Accion Venture Lab and Algebra Ventures both writing tickets.

Also participating in the round: Austria’s Speedinvest, Saudi Arabia’s Khawarizmi Ventures, and AB Accelerator by Arab Bank, as well as Egypt’s, Disruptech and CVentures. The company’s debt financing will be provided by Lendable, while Arab Bank Egypt is acting as the security agent facilitating the transaction.

What does Khazna do? Khazna’s app caters to the 50% of Egyptians who use smartphones and lack access to formal financial services, offering them general purpose credit; buy now, pay later (BNPL); and bill payment services.

This comes as Khazna is eyeing expansions: Khazna could set up a SPAC in 2024, which could be listed either at home or abroad co-founder and CEO Omar Saleh said last week. The fintech player is considering acquiring three technology companies operating in the local market, as well as expanding abroad in one or two regional markets in the first quarter of 2023.

BACKGROUND: Khazna has raised USD 47 mn since it started in 2020 and has a leadership team that includes former executives from the World Remit, Valeo, Uber, CIB, Jumia, Match Group, and Arqaam Capital.